Japan automakers in China to face parts shortage
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New Suzuki vehicles, destroyed by tsunami waters from the March 11 massive earthquake, are piled on the Suzuki company lot, Tuesday, March 29, 2011 in Sendai, Miyagi Prefecture, Japan. [CFP] |
Due to a disrupted supply chain from the devastating tsunami and earthquake, Japanese automakers anticipate a shortage of auto parts at their China's plants and say inventory could run out by the end of April.
Nissan's plant in Xiangfan, Hubei Province has reduced its production plan by more than 60 percent and subsequently nearly halted operations, according to a Xinhua report on March 26.
But the company said production continues in China and will have no issues until mid-April, when the situation will be assessed. The inventory of Infiniti, Nissan's luxury model which gets its full lineup from Japan, can hold the company over till the end of April, the company added.
Zeng Qinghong, general manager of Guangzhou Automobile Group, said its joint ventures with Toyota and Honda can maintain production through mid-April.
Honda had said earlier that its production in China wouldn't be affected until the end of March. Honda has closed its plants in Japan since the earthquake and cannot resume operation until April 3 at the earliest.
Honda's dealers have turned down all May orders for Japan-made vehicles, a Wall Street Journal report said Wednesday.
Toyota's situation is serious as well. The company said its plants in Japan cannot restart production until April 11.
China's business press carried the story above on?Thursday. China.org.cn has not checked the stories and does not vouch for their accuracy.
