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Auto Inventory Shortage Possible After German Plant Explosion

Photo Credit: Infracor

Car makers worldwide may face a severe shortage of a resin used in the production of brake and fuel lines, causing a major kink in the manufacturing supply chain.

A March 31 explosion at the factory of German chemical company Evonik killed 2 workers, and completely halted the production of Cyclododecatriene, also known as CDT. CDT is required in the making of the resin PA-12, which is used for coating brake and fuel lines supplied to all major manufacturers.

Asia’s largest supplier of PA-12, Ube Industries, is already fielding requests from manufacturers for increased production, but states that they are already running at full capacity.

Without getting too deep in the soup here, this shortage could cause a drop in vehicle production by all car makers and a lack of new inventory in showrooms. If a new car is a necessity for you in the next few months, the time to act may be now, before shortages hit.

Read more about this story from Bloomberg here, and here.