Supply chain issues have been blamed by auto maker Nissan as the reason why they have halted production at a number of plants. The stoppages may last a week until Nissan can replenish the offending part which is sourced from Hitachi. Production is estimated by Nissan to reduce production by around 15,000 cars. Although Hitachi makes the engine controller device that Nissan require for manufacturing, it is a shortage of purchased semi-conductors that has caused Hitachi to stockout.
The semi-conductors required by Hitachi are thought to be supplied by Swiss-based STMicroelectronics, who are not commenting on the specific issue faced by Hitachi and Nissan, but did comment to reporters that "car industry is recovering faster than expected and electronics-parts suppliers are under pressure to keep up".
The auto industry supply chain has been under pressure since 2008 when a number of companies in the chain failed. This latest issue for Nissan shows how fragile the global supply chain is for all automakers and how efforts to adopt a lean model can cause major production issues when just one supplier is ineffective.
SOURCE:http://logistics.about.com/b/2010/07/19/supply-chain-issues-for-nissan.htm
The semi-conductors required by Hitachi are thought to be supplied by Swiss-based STMicroelectronics, who are not commenting on the specific issue faced by Hitachi and Nissan, but did comment to reporters that "car industry is recovering faster than expected and electronics-parts suppliers are under pressure to keep up".
The auto industry supply chain has been under pressure since 2008 when a number of companies in the chain failed. This latest issue for Nissan shows how fragile the global supply chain is for all automakers and how efforts to adopt a lean model can cause major production issues when just one supplier is ineffective.
SOURCE:http://logistics.about.com/b/2010/07/19/supply-chain-issues-for-nissan.htm
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