The Hits Never Stop: Nissan Fears Plant Shutdowns Amid Parts Disruption

It wasn’t long ago — just a day, actually — that Nissan’s already embattled CEO told shareholders he’d happily be fired if the company’s turnaround efforts fall flat.

Less than a week after posting its first quarterly loss in a decade, Nissan now fears that a supply chain disruption born of the Chinese coronavirus outbreak could idle plants worldwide. It’s the last thing the company needs.

Company sources who spoke with Bloomberg claim the automaker fears its supply of numerous components will dry up if state-mandated shutdowns progress beyond February 20th. The automaker sources some 800 parts from factories in Hubei province, the manufacturing-heavy epicenter of the outbreak.

While many plants will be allowed to come back online on the 21st, Nissan can’t be sure all locales will turn on the lights. The uncertainty is no doubt leading to sleepless nights among company brass, as the sources say Japanese assembly of certain models could grind to a halt by February 23rd. Indonesian production could be hit not long after, followed by Nissan plants elsewhere, including in North America.

Nissan has already had to idle a Japanese plant for two days due to the supply chain chaos spreading through the industry. The company’s not alone in its fear, as Hyundai and Fiat Chrysler recently shut down plants in South Korea and Serbia for the same reason. General Motors was forced to defend its ability to continue domestic truck output after a UAW local suggested the automaker might soon have to idle its most profitable plants.

According to Bloomberg’s sources, Nissan leaned on China’s all-powerful communist government to grant plants the ability to reopen if appropriate safety measures are put in place. One of the company’s own joint venture facilities came back online this week.

[Image: Nissan]