Car Production in Europe to Collapse?
On March 31, 2012, a major explosion occurred in a German chemical manufacturing plant operated by Evonik Industries AG.
The aftermath of the explosion has resulted in almost half the production of global capacity to make PA-12, also called Nylon-12, to disappear. PA-12 is used by automakers around the world as a key ingredient in auto resin. Auto resin is used to manufacturer brake lines and vehicle parts used in all vehicles.
The most vulnerable auto manufacturers include BMW, Daimler, Hyundai Motor Co., and Kia Motors Corp. Most Japanese automakers have several months' of supplies of PA-12 remaining. However, European automakers may have little time left before their inventories are exhausted. The good news for North and South American automakers is that because of shipping times, they may have extra weeks before their supplies are diminished.
Ultimately, unless new production capacity of PA-12 is somehow brought online shortly, auto production globally will slow down drastically in the very near future. The reduced production capacity of cars in Europe will drive the global economic recovery into a collapsed state of existence.
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