| 11:45 PM EST

Carmakers, Suppliers to Discuss Resin Crisis

#Ford #Toyota #GeneralMotors


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Executives from carmakers and auto suppliers are holding an emergency meeting in suburban Detroit on Tuesday to discuss the global shortage of PA-12 resin caused by a fatal explosion at an Evonik Industries plant in Germany on March 31.

The high-performance resin is used in automotive fuel systems and brake lines. Evonik's plant produced about half the world's supply of another chemical needed to make PA-12.

Other PA-12 suppliers say they are already running at or near full capacity and won't be able to help ease the shortage. Last week TI Automotive Chairman William Kozyra warned that vehicle production is almost certain to be disrupted in the next few weeks. TI Automotive supplies fuel systems to virtually all the world's major carmakers.

Chrysler, Ford, General Motors, Nissan and Toyota tell Bloomberg News they are assessing the crisis but are not yet experiencing shortages. Chemical producers say they may be able to substitute other materials.

Deutsche Bank AG analyst Rod Lache says automakers may benefit from by their experience last year in coping with parts shortages after Japan's earthquake and tsunami and Thailand's floods.


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