Supply chain hitch puts brakes on Nissan production
By NewsDesk
Share
A supply chain hitch has forced Nissan to put the brakes on manufacturing at several factories, at least some of which are in North America.
Japan’s second-biggest car producer has admitted that it will cease manufacturing of vehicles at some plants until the end of this week due to a shortage of engine controller devices.
The devices in question are supplied by a unit of Hitachi. However, Nissan stressed that the impact on its global production would be minimal as it predicts that it will only reduce output by around 15,000 cars due to the supply problem.
The Wall Street Journal reported that Hitachi said it is “hamstrung” by an electronics maker unable to fill an order for bespoke semiconductors designed for Nissan’s engine management device. According to the newspaper, neither Hitachi nor Nissan identified the chip maker, but a “person familiar with the matter” said the company is Swiss-based STMicroelectronics.
“A STMicroelectronics spokesman declined to comment specifically on Hitachi and Nissan. But he noted that the car industry is recovering faster than expected and electronics-parts suppliers are under pressure to keep up, adding that the company remains ’strongly engaged’ in keeping its commitments to customers,” the WSJ reported.
“Analysts say Nissan became a victim of an overstretched supply chain while ramping up to meet recovering demand after the plunge in car sales during the financial crisis forced part makers to slash production capacity.”
The problems come after Nissan chief executive Carlos Ghosn streamlined the company’s supply chain around five years ago and moved to a “lean” manufacturing model.
The WSJ reported that Nissan’s chief operating officer, Toshiyuki Shiga, said that the parts procurement issue could also spread to North America and disrupt production there because the company uses Hitachi’s engine control unit for cars made in the US.
Article From
http://logisticsweek.com/road/2010/07/supply-chain-hitch-puts-brakes-on-nissan-production/?goback=.gmp_2060573.gde_2060573_member_25247795
