Nissan to Suspend Japan Plant With Supplies Disrupted by Virus

(Bloomberg) -- Nissan Motor Co. said one of its Japanese plants will be halted for two days because the coronavirus outbreak in China disrupted supply of automobile parts.

The factory, which makes the Serena and X-Trail models, will temporarily close on Friday Feb. 14 and Monday Feb. 17, said Azusa Momose, a spokeswoman for Yokohama-based Nissan. Production is expected to resume immediately thereafter, she said, adding that there had been no impact on other factories located in Japan.

While automakers including Nissan had suspended output at factories in Hubei, a wider impact had been widely anticipated because of the global nature of auto manufacturing. A lack of parts adds another major headache for an industry already battling waning demand and rising spending requirements for electric and autonomous vehicles.

Read more: Virus Endangers Parts Supply for Already-Embattled Car Industry

Nissan, which has seen management turmoil, weaker profitability and stressed relations with top-shareholder Renault SA since the November 2018 arrest of former Chairman Carlos Ghosn, is the first Japanese carmaker to halt production domestically due to the coronavirus outbreak. Last week, South Korea’s Hyundai Motor Co. said it halted production outside China because of component shortages caused by the virus.

Nissan also said it would start to resume production in China from Feb. 17.

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