Front Page of the Buffalo News.
http://www.buffalonews.com/city/article393195.ece
Updated: April 15, 2011, 12:18 AM
The surge in auto sales has led to unexpected shipping snarls on the railroad tracks -- and some shortages on car lots.
Railroads are scrambling to keep up with automakers' increased demand for more rail cars to move vehicles from the factories to the dealers.
The impact on Buffalo Niagara region dealers is sporadic. Some report delays, albeit minimal; others say they have not been affected.
Railroads are putting more rail cars back into use, after sidelining them during the recession. But as they play catch-up, some vehicle shipments are getting bottlenecked.
The shipping delays are occurring as the auto industry shows signs of rebounding from the recession and building on last year's upswing in sales.
Separately, disruptions in auto production caused by the Japanese earthquake and tsunami persist. The impact of the disaster is leading to temporary factory shutdowns elsewhere in the world.
Frank Downing Jr., president of Towne Automotive Group, which sells Ford and Chrysler, among other brands, said his operations are seeing some effect from the railroad delays.
"It's just taking a lot longer to get some vehicles than it should," Downing said.
His father-in-law's new vehicle is among thousands stuck in Chicago, several weeks after it was produced. Meanwhile, some vehicles ordered more recently have come in, reflecting the unpredictable nature of the impact.
"It's not a major issue at this time," Downing said.
Ford dealers say the Explorer is one vehicle line that has been affected. Chuck Basil Sr. of Basil Ford said he has been told that a lack of rail cars capable of carrying larger vehicles is one factor.
Basil said the dearth of rail cars is not the only reason Explorers are harder to get. Demand for the vehicles is also running strong.
"It's not like we're not getting them," Basil said. "It's just that there's a backlog, and we're waiting."
Downing said many of his Explorers are "presold" to specific customers rather than brought in as stock for the lot. So when those shipments are delayed, there is a customer waiting for it to arrive.
Determining when a vehicle will arrive can be hard to pinpoint these days, Downing said. "That's where it gets frustrating, when you can't give a customer an answer."
Since the economic recovery began, CSX has been redeploying locomotives and rail cars to meet the additional automotive demand, said Robert Sullivan, a spokesman for the railroad.
Early this year, Sullivan said, CSX's automotive distribution network was affected by a combination of factors: winter weather, a surge in demand, new model launches and structural changes in trucking services used by many automakers.
"CSX and its automotive customers will continue to work together cooperatively to ensure timely, reliable shipments," Sullivan said.
Duane Paddock of Paddock Chevrolet said he has seen minor slowdowns of a day or two for shipments of some vehicles. "I'm not waiting two and three weeks to get my vehicles," he said.
Meanwhile, ###cillo Chevrolet and Steve Baldo Chevrolet said they have not seen any impact on deliveries from the railroad issue.
The American Association of Railroads reported shipments of motor vehicles and parts were up about 11 percent through April, compared with the same period a year ago.
Meanwhile, just over a month after the earthquake and tsunami struck Japan, automakers based there are still recovering from the disaster.
Automakers such as Toyota and Nissan are resuming auto production in Japan on a limited scale. But the impact stretches far beyond Japan. In North America, Toyota announced it will suspend vehicle production for five days this month, due to shortages of parts from Japan.
Towne Automotive also sells Mazda, a Japanese brand, but supply of those vehicles has not been a problem for Downing, who said he increased orders last fall to ensure his dealership would have an ample supply in spring.
As a result, he is getting calls from rental car companies and other dealers in search of Mazdas. "But we're keeping them for our customers," he said.
Even dealers who sell non-Japanese automotive brands fear that the problems in Japan will eventually touch the vehicles they sell, since a wide variety of automakers rely on parts suppliers in Japan. For instance, GM in late March idled a truck plant in Louisiana for one week when it faced a shortage of unidentified parts from Japan.
But if a parts shortage does affect other brands, experts say it probably won't show up until late spring or early summer.
http://www.buffalonews.com/city/article393195.ece
Updated: April 15, 2011, 12:18 AM
The surge in auto sales has led to unexpected shipping snarls on the railroad tracks -- and some shortages on car lots.
Railroads are scrambling to keep up with automakers' increased demand for more rail cars to move vehicles from the factories to the dealers.
The impact on Buffalo Niagara region dealers is sporadic. Some report delays, albeit minimal; others say they have not been affected.
Railroads are putting more rail cars back into use, after sidelining them during the recession. But as they play catch-up, some vehicle shipments are getting bottlenecked.
The shipping delays are occurring as the auto industry shows signs of rebounding from the recession and building on last year's upswing in sales.
Separately, disruptions in auto production caused by the Japanese earthquake and tsunami persist. The impact of the disaster is leading to temporary factory shutdowns elsewhere in the world.
Frank Downing Jr., president of Towne Automotive Group, which sells Ford and Chrysler, among other brands, said his operations are seeing some effect from the railroad delays.
"It's just taking a lot longer to get some vehicles than it should," Downing said.
His father-in-law's new vehicle is among thousands stuck in Chicago, several weeks after it was produced. Meanwhile, some vehicles ordered more recently have come in, reflecting the unpredictable nature of the impact.
"It's not a major issue at this time," Downing said.
Ford dealers say the Explorer is one vehicle line that has been affected. Chuck Basil Sr. of Basil Ford said he has been told that a lack of rail cars capable of carrying larger vehicles is one factor.
Basil said the dearth of rail cars is not the only reason Explorers are harder to get. Demand for the vehicles is also running strong.
"It's not like we're not getting them," Basil said. "It's just that there's a backlog, and we're waiting."
Downing said many of his Explorers are "presold" to specific customers rather than brought in as stock for the lot. So when those shipments are delayed, there is a customer waiting for it to arrive.
Determining when a vehicle will arrive can be hard to pinpoint these days, Downing said. "That's where it gets frustrating, when you can't give a customer an answer."
Since the economic recovery began, CSX has been redeploying locomotives and rail cars to meet the additional automotive demand, said Robert Sullivan, a spokesman for the railroad.
Early this year, Sullivan said, CSX's automotive distribution network was affected by a combination of factors: winter weather, a surge in demand, new model launches and structural changes in trucking services used by many automakers.
"CSX and its automotive customers will continue to work together cooperatively to ensure timely, reliable shipments," Sullivan said.
Duane Paddock of Paddock Chevrolet said he has seen minor slowdowns of a day or two for shipments of some vehicles. "I'm not waiting two and three weeks to get my vehicles," he said.
Meanwhile, ###cillo Chevrolet and Steve Baldo Chevrolet said they have not seen any impact on deliveries from the railroad issue.
The American Association of Railroads reported shipments of motor vehicles and parts were up about 11 percent through April, compared with the same period a year ago.
Meanwhile, just over a month after the earthquake and tsunami struck Japan, automakers based there are still recovering from the disaster.
Automakers such as Toyota and Nissan are resuming auto production in Japan on a limited scale. But the impact stretches far beyond Japan. In North America, Toyota announced it will suspend vehicle production for five days this month, due to shortages of parts from Japan.
Towne Automotive also sells Mazda, a Japanese brand, but supply of those vehicles has not been a problem for Downing, who said he increased orders last fall to ensure his dealership would have an ample supply in spring.
As a result, he is getting calls from rental car companies and other dealers in search of Mazdas. "But we're keeping them for our customers," he said.
Even dealers who sell non-Japanese automotive brands fear that the problems in Japan will eventually touch the vehicles they sell, since a wide variety of automakers rely on parts suppliers in Japan. For instance, GM in late March idled a truck plant in Louisiana for one week when it faced a shortage of unidentified parts from Japan.
But if a parts shortage does affect other brands, experts say it probably won't show up until late spring or early summer.