Nissan halts production in US, Mexico due to delay in supplies

It has been reported that Nissan Motor might halt production at its plant in Mexico. The reason behind it, is the delay in the delivery of engine control units. The company has planned to halt the production temporarily as the supplier Hitachi Automotive Systems is unable to deliver the parts on time. Once the announcement for the same is done, it would also interrupt the output in Japan.

Published On Jul 13, 2010 16:09 IST

Published OnJul 13, 2010 16:09 IST

Last Updated OnJul 13, 2010 16:09 IST

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It has been reported that Nissan Motor might halt production at its plant in Mexico. The reason behind it, is the delay in the delivery of engine control units. The company has planned to halt the production temporarily as the supplier Hitachi Automotive Systems is unable to deliver the parts on time.

Once the announcement for the same is done, it would also interrupt the output in Japan. Toshiyuki Shiga, Nissan chief operating officer said that they are verifying inventories and are also considering and discussing the appropriate responses. Shiga also said that this time it is an unexpected case and as they did not have any immediate solution so they decided to halt the production for sometime. He also said that in future they will be prepared for any such situation.

Japan’s third largest car maker Nissan has got three plants in US. These plants provide 950,000 vehicles every year. Similarly the company has got four manufacturing and distribution facilities in Mexico. These provide an annual production of more than 300,000 units. Honda and Fuji Heavy Industries are also affected by this delay.