Supplier glitch could halt U.S. Nissan production

By Reuters
Posted July 13, 2010 at 10:51 a.m.

Nissan Motor Co. said Tuesday that a delay in the supply of electronic control units from Hitachi Ltd. that is disrupting production in Japan could also affect its U.S. and Mexico factories.

Japan’s No.3 automaker said Monday it would halt part of its domestic production for three days starting Wednesday after Hitachi said delivery of engine control units was running behind schedule. Production would return to normal next week, it said.

“We’re working around the clock to try and minimize any inconvenience to our customers,” Chief Operating Officer Toshiyuki Shiga said at the launch of the fourth-generation March in Japan.

“For now, we’re still gauging when and whether we would need to halt production in the United States.”

Shiga said the Hitachi-made component was used in most Nissan vehicles, but any impact would likely be at plants in Smyrna, Tenn., and Mexico.

“If there is any impact it would first be on big-volume models like the Altima or Sentra (sedans),” he added.

Nissan’s shares ended down 1.5 percent Tuesday.

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