Tuesday, March 29, 2011

Scarcity. Sold in the USA. Still Made in Japan.

What can I say- it's a terrible thing what's going on in Japan. Avoiding to re-iterate everything that's been written/speculated on what's going on over there- well, it's just not worth my keystrokes. I can't change anything. And avoiding to sound like a tabloid making predictions- I won't write anything about it. It's bad and it's sad- that's all I will say.

One thing I am quite amused at (maybe it's callus to use the word amused) is the direct effect all this is having on the automobile industry. It's not funny, but as a former economics minor in my undergraduate studies, it's comforting to see the effects of simple supply and demand- still alive and well. At least easily understood, for me anyway.

With news of Honda, Toyota and others curtailing or halting production, and the very latest, a Japanese paint plant closing is causing glitches or ripples all across the automotive world, half-the-world away.

Supposedly, even Ford can't make black paint anymore
- ironic, since it was Henry Ford who stated "you can have any color you'd like, so long it is black..." when he made his original Model Ts. Reds are a problem too. Also ironic- as Red is the Imperial Japanese color if there ever was one...

According to the CNN article- Ford's original Model T-era black was called "Japan Black," again, you can learn something new everyday, even in cars, if you read enough of the news. And you can't make this stuff up... Ironic to say the least.

But the economist/auto buff in me can't help but find all these supply-chain-management nightmares that are unfolding by the day, well, amusing since- you read how globally dependent everything is these days, especially the car business.

Just-In-Time (JIT) also known as the Toyota Production System, used worldwide in most every form of production, predicates- there aren't a whole lot of extra Japanese cars, parts, red and black paints in the pike to make the problems in Japan not felt on the world's doorsteps.

Is it a big deal? I don't know, maybe? There are snags, and will be more for sure.

Dare I say- the American Japanese car distribution networks will think of creative ways to stir demand- that's wise salesmanship. Or simply, basic supply and demand? But what a difference a year makes.

Last year, they couldn't give-away a Toyota at any cost or color, now, well- there might be none left for the big sales come this late summer- which are just around the corner.

Switching gears a bit- but not totally off-topic- a friend of mine linked to me an eBay auction for a very special 1972 Datsun 240Z for sale, the original Z-car. But this one has a big twist.

A 1972 240Z- beautifully listed and epically described. Built to the tune of something like over an eighth-of-a-million dollars (or $125,000 for you less dramatic number types) to discerning performance standards well beyond originally intended for any first-generation Z-car. It's a spectacular car, and a spectacular story. Do I think he'll get his reserve? Maybe, maybe not. He should have painted the car black or red, just to be safe in this market.

(There's a lot I can say for this very car and his efforts- but maybe I'll save them for another time. Regardless of the harsh realities- I give this guy and his '72 Z an A-for-effort!)

The car reminded me of when in the mid-to-late 1990's, around the very same time I was studying economics in college, when Nissan stopped making the Nizzan 300ZX. To appease the loyal USA enthusiasts (and in a bid to not lose the image of the Z in its most lucrative and largest market) Nissan commissioned a few hundred fully-restored and sorted vintage Zs by Pierre Perrot's PierreZ Car Inc, in California.

The cars were restored to A-1 condition. Everything either re-built or replaced to like-new condition, promoted and sold in select Nissan dealerships with limited warranties, the whole nine yards. It was a unique campaign.

The American automobile business was able to sell a demand, for a Japanese car that wasn't even being made anymore.

I could only imagine the sweet vat of lemonade that's being conjured up as of now, to placate the current Japanese automobile/parts/black and red paint situation as it stands. But we'll think of something. We always do.

Maybe American dealers will get another taste of the days when people would follow the auto transporters right to their doorsteps to get their Honda Accords, and Toyota Celicas- in any color, shape or form? And at any price.

It will be like 1980, all over again. But with less shades of red and black, of course.