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

Steph Willems
by Steph Willems
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]

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  • Redgolf Redgolf on Feb 20, 2020

    Anybody talking here on meds? READ - The Food and Drug Administration estimates that at least 80 percent of the active ingredients found in all of America's medicines come from abroad – primarily China.May 30, 2019

    • Schurkey Schurkey on Feb 20, 2020

      The faster and harder China collapses, the sooner those ingredients will be made in stable, "free-world" countries. Preferably USA-Canada; but there's plenty of other options. For that matter, an EPIC failure of China might bring substantial manufacturing back "home".

  • Thornmark Thornmark on Feb 20, 2020

    that must be good news for Nissan - they can blame collapsing sales on external forces and manage their excess inventory didn't GM just do that on a lesser scale w/ the strike how's that new Corvette really doing?

  • Cprescott Yawn.
  • 28-Cars-Later Wrangler people are crazy.
  • 28-Cars-Later "Transition" to layoffs, this guy is the Bob(s) from Office Space.
  • Vap65689119 As a release engineer I also worked in quality, if they are serious they should look at Toyotas business model which has their suppliers as genuine partners, thats how you get a quality product
  • Mike-NB2 I seem to have landed in an alternate universe. $12,000 for a Jeep that's going on a quarter-century old and with an automatic transmission? Wow.