Nissan is preparing to stop their factories in Europe and the U.S., as the epidemic in China has led to shortages of components. It is reported by Automotive News Europe, citing Bloomberg, citing its own sources.
The enterprises located in Hubei province, which became the focus of the spread of coronavirus, Nissan buys over 800 different parts, from brake hoses to the air conditioning system controllers. The Chinese government has made it clear that the majority of automotive component manufacturers will be able to return to work after 21 Feb. Japanese companies fear that if this does not happen, inventory will be depleted very quickly.
For example, in Japan the production of some models will have to stop on February 23. Then will be paralyzed factories in Malaysia, USA, Mexico, UK, Spain, India and.
A modern car consists of about 30 thousand components, whereas, say, their smartphone is 100 times less. Because of this, automakers and their suppliers are particularly vulnerable in emergency situations like these. According to the research company IHS, Markit, caused by a novel coronavirus, the epidemic may cut production of cars by 1.7 million units – more than all the world, the Volkswagen group produces in your best month.
Meanwhile, from illness died more than 2.1 thousand people, more than 75 thousand infected. Hubei province remains a quarantine zone, the authorities are actively looking for people with symptoms of the coronavirus. For Nissan, the situation is complicated by the fact that the region based its major partner, Dongfeng Motors. Due to the lack of spare parts Japanese brand has stopped production in Kyushu 14 and 17 February and is going to do the same thing the 24th, but other plans not yet officially divided.
Nissan have enough problems in addition to shortage of components: the company is in crisis from the moment of arrest of its now former boss Carlos Ghosn at the end of last year. Recently producer’s shares fell on news of the lowest profit made during the last 10 years.