Altima, Sentra production would be first to feel impact

Nissan may halt North America output on parts delay

Altima, Sentra production would be first to feel impact

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YOKOHAMA, Japan -- Nissan Motor Co. said today it may halt production at plants in Tennessee and Mexico because of delays in receiving engine parts from Hitachi Ltd.

A decision on whether to stop output in North America hasn't been made yet, Toshiyuki Shiga, Nissan's chief operating officer, told reporters here. The carmaker said it will stop production at factories in Japan from July 14 to July 16 because of the parts delay, cutting output by 15,000 automobiles.

Engine control units made by Tokyo-based Hitachi couldn't be delivered on time to Nissan because integrated circuits needed to make them were not available from a supplier, Hitachi said Monday.

"We're working around the clock to try and minimize any inconvenience to our customers," Shiga said at the launch of the fourth-generation March compact car.

"For now, we're still gauging when and whether we would need to halt production in the United States."

Shiga said the Hitachi-made component was used in most Nissan vehicles, but any impact would likely be at plants in Smyrna, Tenn., and Mexico.

"If there is any impact it would first be on big-volume models like the Altima or Sentra (sedans)," he added.

Two other automakers were affected, Hitachi said, without naming them. Toyota Motor Corp. and Honda Motor Co., Japan's two biggest automakers, said Monday they weren't affected.

Bloomberg and Reuters contributed to this report. Contact Automotive News

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