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Nissan suffers supply chain setback

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Nissan suffers supply chain setback

Friday, 16/7/2010 11:59
Nissan has been hit by a supply chain hitch that has forced it to put the brakes on production at several factories.

The car manufacturer, the second-biggest in Japan, announced it will cease manufacturing vehicles at selected plants until a shortage of engine controller devices is remedied.

Hitachi is the supplier of the devices and it said it had been "hamstrung" by an electronics maker unable to fill an order, The Wall Street Journal Reported.

However, Nissan said the impact on its global production will be minimal as the total reduction in output is only likely to amount to around 15,000 cars.

"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 news provider said.

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