Nissan to shut Japan factory due to shortage of Chinese parts

Hyaenidae · February 12, 2020

Nissan is the latest car maker to temporarily shut one of its factories as it can't get parts from China.

The firm will halt production for two days at a plant in Japan which makes the Serena and X-Trail models.

Global car brands are facing similar disruptions as much of China's manufacturing sector remains locked down due to the deadly coronavirus.

Hyundai temporarily closed its factories in South Korea last week due to a shortage of Chinese parts.

In fact, many of the world's biggest car makers are dealing with dwindling supplies as factories across China remain closed.

China is the world's manufacturing powerhouse and a major part of the global supply chain for the automotive industry, making key parts and components. Hubei, where the coronavirus outbreak first started, is a major car manufacturing hub.

Last week, Fiat Chrysler said it was considering halting production at one of its European plants due to difficulty in sourcing parts from China. It joins a long list of car brands that rely on Chinese exports.

''It only takes one missing part to stop a line," said Mike Dunne, a consultant to the car industry in Asia.

Many factories and car plants were due to reopen on Monday after an extended Chinese New Year break. Some restarted production, but others remained closed due to local authority restrictions and lack of workers. Nissan expects to restart production in China on 17 February.

In a statement, Nissan said: "Due to supply shortages of parts from China, Nissan Kyushu in Japan will carry out temporary production adjustments on February 14 and 17." It stressed there was no impact on its other Japanese factories.

https://www.bbc.com/news/business-51441344