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๐Ÿ‡ธ๐Ÿ‡ฌ Singapore /Economy & Trade

US-Iran deal may not quickly ease supply shortages for auto shops

From CNA · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • Auto shops in Tokyo and Detroit face shortages of motor oil, paint, and other products due to supply chain disruptions caused by the Middle East conflict.
  • The closure of the Strait of Hormuz has blocked nearly a fifth of global oil flows, impacting petroleum-derived products.
  • Experts believe a potential U.S.-Iran deal, while ending the conflict, may not immediately alleviate supply issues for smaller businesses.

Small auto repair shops in Tokyo and Detroit are struggling with persistent shortages of essential products like motor oil and paint, stemming from global supply chain disruptions exacerbated by the Middle East conflict. The situation has been ongoing for months, impacting businesses that rely on timely delivery of these materials.

Hiroyuki Nakamura, a director at Tokyo-based auto-repair company Shin Etsu Denso, described the unprecedented shortage of motor oil, stating that supplies "were almost completely wiped out after the war started in March. Since April, nothing has been coming in." Similar issues affect paint thinner and diesel exhaust fluid, further complicating repair work. Shops like Fuchu Car in suburban Tokyo are facing critical shortages of specific paint components, such as the popular "pearl white" finish, forcing them to potentially delay painting jobs.

Oil supplies were almost completely wiped out after the war started in March. Since April, nothing has been coming in.

โ€” Hiroyuki NakamuraA director at Shin Etsu Denso described the severe shortage of motor oil affecting his business.

The closure of the Strait of Hormuz, a critical chokepoint for global oil transport, has significantly impacted the availability of petroleum-derived products. This blockage has snarled nearly a fifth of global oil flows, leading to bottlenecks and shortages for various industries. While U.S. President Donald Trump announced a preliminary agreement to end the conflict, industry experts caution that shipments through the strait may take time to return to normal.

Executives and mechanics interviewed before the U.S.-Iran deal announcement expressed concerns that even with a resolution to the conflict, immediate relief for smaller businesses is unlikely. Strict storage regulations for materials like motor oils further limit the ability of companies to stockpile large quantities, making them vulnerable to supply chain disruptions. Suzuki Motor, for instance, noted that some dealers had temporarily stopped accepting bookings for engine and brake oil changes due to delays.

We'd complete the painting later, once supplies return.

โ€” Masato YagaiThe president of Fuchu Car explained his shop's strategy for dealing with paint shortages.
DistantNews Editorial

Originally published by CNA in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.