As if the automotive industry was not already reeling from the earthquake and tsunami that hit Japan on 11 March (for a more detailed analysis, see Plasteurope.com of 29.03.2011), now North America is suffering the effects of what many are calling the deadliest spate of tornados since the 1970s. As winds battered the southern states of Alabama, South Carolina and Tennessee, thousands of homes were swept away or destroyed, and hundreds of people left dead.

It is in these southern states that many overseas automotive firms have established their North American base, including Toyota and Mercedes. Still dealing with the effects of the Japanese disaster, the former has now been forced to close its engine plant in Huntsville, Alabama due to a power shortage. German car maker Mercedes reportedly shut its plant in Vance, Alabama on 27 April, although news media say the decision was not related to plant damage but to help its roughly 2,800 employees avoid travelling in such dangerous times.

However, the problems do not extend to the leading car manufacturers alone. It still remains unclear how many of the small, regional automotive suppliers have suffered damages, and when or even if they will resume operations. Coupled with the Japan catastrophe, this latest natural disaster could spell real trouble for the automotive industry, not to mention the states affected.

Clearly, the power outages have also paralysed other industry sectors. Aerospace company Boeing, for example, has shut down its plant in Huntsville, Alabama, and has told employees not to come to work. How long the factory will remain down is still unclear. Refineries have also been suffering from the electricity cuts, including Hunt Refining, which saw several units knocked out of operation by power interruptions on 27 April. The group reportedly restarted operations a day later. Another victim has been BP’s refinery in Texas City, Texas, with local media reporting that the power outage had also knocked out power at the adjacent chemical plant. In addition, market sources have reported that the refinery outages have led Enterprise Product Partners to declare force majeure for propylene on 27 April, but Plasteurope.com was unable to independently verify these claims.