Its exactly for these reasons (mainly, plus the suprresion of the tourist industry), bureaucrats stifling the movement of goods and services that's going to kill our economy. Watch and see, you read it here first, I mentioned it the day of the event but I will continue to post articles proving my point. Is it any wonder that the stock market is going to react negatively. The terrorists already won.

09/14 12:17 GM, Toyota Close Plants Because of Parts Shortages (Update2) By Bill Koenig

Detroit, Sept. 14 (Bloomberg) -- General Motors Corp. and Toyota Motor Corp. each closed one North American plant in the latest disruptions as auto-parts deliveries are delayed by tighter security at the U.S.-Canada border after terrorist attacks.

General Motors canceled the first shift at its Oshawa, Ontario, plant after sending yesterday's second shift home early, the automaker said. Toyota eliminated today's first shift at its Georgetown, Kentucky, factory, also continuing a shutdown that began with the second shift yesterday.

Automakers keep a limited number of parts at assembly plants to reduce costs, and they depend on frequent shipments from suppliers. Those ``just-in-time'' shipments have been disrupted by stepped-up border inspections and a halt in air-freight shipments after Tuesday's attacks. The production losses come as automakers cope with reduced sales in the U.S.

The success of the just-in-time system ``is all in the execution'' of parts shipments, said Alan Baum, analyst at the automotive forecasting company Planning Edge.

U.S.-based automakers since the 1980s have followed Japanese rivals in adopting the parts-supply strategy and aren't likely to change because of the latest disruptions, he said.

Ford Motor Co., DaimlerChrysler AG, and Honda Motor Co. yesterday also shuttered some U.S. and Canadian plants because of parts shortages.

General Motors, Toyota

General Motors spokesman Tom Wickham declined to say how much production was lost in Oshawa. The largest automaker said about 2,100 hourly employees were affected. The plant makes Buick Century and Regal cars.

Another Oshawa plant that builds full-size pickup trucks stopped its night shift 2 1/2 hours early yesterday, the Detroit- based company said. The move affected about 1,050 workers. Production resumed with today's first shift.

Toyota, Japan's largest automaker, said production at Georgetown was expected to resume with today's second shift. The factory, which makes Camry and Avalon sedans and Sienna minivans, build about 3,000 fewer vehicles than planned this week because of temporary shutdowns today, yesterday and Tuesday, said spokeswoman Trina Visceglia.

The lack of air-freight shipments contributed to the Georgetown production halts, she said

All of Dearborn, Michigan-based Ford's North American plants were operating today, said spokesman Ed Lewis. Temporary closings this week resulted in lost production of about 16,300 vehicles, which the second-largest automaker plans to make up, he said.

DaimlerChrysler's Chrysler unit expects to get through today without lost production, though parts supplies to Canadian plants are starting to get tight, said spokesman Mike Rosenau. Three of 12 Chrysler plants will operate this weekend, and the company hopes to stockpile parts for Monday, he said.

The Stuttgart, Germany-based automaker yesterday shut down a Windsor, Ontario, plant for three hours.

-- Guy Daley (guydaley1@netzero.net), September 14, 2001

Answers

This is a restatement of the problem that Y2K preparationists raised: The gains in the U.S. economy, and the productivity improvements from heavy reliance on "just in time" business practices, carries a high downside Risk. This risk is that any disruptions, whatever the cause, will have greatly augmented adverse economic effects.

"Just In Time" methods thus act like leverage: When all is well, the gain is enhanced; but it cuts both ways, in that when all is not well, the downside effects are likewise magnified.

-- Robert Riggs (rxr.999@worldnet.att.net), September 14, 2001.