Nissan to temporarily halt production

Nissan has stopped production at four of its five Japanese auto plants, because of a delay in critical parts delivered from a third party. The stoppage of production could result in fewer cars for sale in the Japanese market.

Japanese manufacturer Hitachi said that its engine control unit, an important component of car engines, would be delayed. Although Hitachi supplies other Japanese manufacturers, Nissan is the most affected – 90 percent of Hitachi’s production line was to go to Nissan, according to the Wall Street Journal.

Hitachi likewise blamed the problem on a supplier of integrated circuits, part of the ECU. “The supply of a specific IC chip suddenly declined this month, and the supplier has yet to tell us why exactly this is happening,” managing director Yasuhiko Honda said at a joint press conference with Nissan.

Nissan has not yet ascertained the potential financial impact of the delay, but expects that it will produce 15,000 fewer cars as a result. Hitachi has said that it is working with the supplier to obtain a shipment for late July or August so that production may continue.