The American auto industry continues to be affected by the earthquake and tsunami that struck Japan and caused widespread devastation on March 11th.

Higher car prices in the United States are believed to have been caused in part by shortages of parts and cars stemming from supply chain disruptions in Japan.

According to Ellen Hughes-Cromwick, Ford Chief Economist, the entire U. S. industry lost production of between 300,000 and 400,000 vehicles so far in April and May because of disrupted parts supplies from Japan. Toyota is reported to have produced only 30% as many vehicles in its North American factories in May as it did before the earthquake and tsunami.

Since there are fewer vehicles, automakers are able to charge higher prices for the ones that are made.

In the United States, automakers reported weaker sales in May, with sales having slipped by 3.7%. According to Jesse Toprak, an auto analyst with TrueCar. com, some customers are likely to have been priced out of the market as a result of the higher prices. The higher prices, combined with broader economic weakness, prompted many consumers to delay major car purchases.

However, auto sales are expected to recover during the summer as Japanese automakers increase production and introduce incentives in order to make up for sales last in the aftermath of the earthquake and tsunami.