Bloomberg March 17, 2011, 4:13 PM EDT
By Craig Trudell
March 17 (Bloomberg) — General Motors Co., the largest U.S. automaker, will suspend production at its Shreveport Assembly in Louisiana for the week of March 21 because of a parts shortage resulting from the crisis in Japan.
Phi Beta Iota: Chernobyl and Bho Pal did not have the same cascade effect as today’s nuclear events (five of them) in Japan. The global supply chain vulnerability has grown to the point of severe dysfunctionality in the face of a major disruption. Rising oil prices may also change the affordability of out-sourced parts, one reason we are so interested in the Open Farm Technology initiative. Despite over a decade of recommendations to be more thoughtful about this, entire industries continue to ignore both “true cost” information and supply chain choke point information.