Nissan may halt US, Mexico production
Nissan Motor said today it might suspend production in the United States and Mexico due to a delay in the delivery of engine control units, after announcing it would interrupt output in Japan.Updated: Jul 13, 2010 12:21 IST
Nissan Motor said on Tuesday it might suspend production in the United States and Mexico due to a delay in the delivery of engine control units, after announcing it would interrupt output in Japan.
"We are verifying inventories and are considering appropriate responses," Nissan chief operating officer Toshiyuki Shiga told reporters.
Nissan has three US plants that have a total output capacity of 950,000 vehicles every year. In Mexico it has four manufacturing and distribution facilities with an annual production capacity of more than 300,000 units.
Japan's third largest car maker said on Monday it would temporarily halt production lines at home for three days starting Wednesday after supplier Hitachi Automotive Systems could not deliver the parts on time.
Hitachi said it could not receive a type of custom integrated circuit, a main component of the engine control unit, in time from a supplier, without identifying that company. The suspension affects about 15,000 units in Japan.
"It is a random and unexpected case. We do not have another immediate solution, but in the future I hope that we will be prepared to respond to this kind of urgent situation," Shiga said.
The delay is also affecting Honda and Fuji Heavy Industries -- the company behind the Subaru brand -- although 90 percent of the parts are used to supply Nissan.
First Published: Jul 13, 2010 12:09 IST