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Business

Nissan's shipment freeze puts squeeze on parts suppliers

Furloughs on the table amid lengthy production stoppage

Workers assemble air conditioning units at a Calsonic Kansei plant in Gunma Prefecture, Japan.

TOKYO -- Suppliers are finding themselves stuck in neutral just one week after Nissan Motor halted domestic automobile shipments following the Japanese company's inspection scandal.

Autoparts maker Calsonic Kansei is considering worker furloughs, forced to halt the company's production line at a Nissan factory in Yokosuka, a port city south of Tokyo, after the carmaker suspended its own output at the site.

Some Calsonic employees are taking time off with pay. But with the production freeze slated to last indefinitely, Calsonic is examining having some workers take partially subsidized leaves of absence.

Nissan, which let unqualified personnel perform final inspections on vehicles at multiple sites, may bear the financial burdens associated with Calsonic's stoppage, including lost profit and labor expenses.

"I believe we must strongly request [that Nissan] cover costs accrued," Calsonic President Hiroshi Moriya said Thursday.

NHK Spring has suspended output of Nissan car seats at a plant in nearby Yokohama. "Since [Nissan's] shipment moratorium will apparently be extended, we must consider changes in personnel distribution," President Takashi Kayamoto said.

Yorozu, which supplies suspension systems and other components to Nissan, has interrupted production on certain products to the automaker, President Ken Shido revealed Thursday.

Nissan transmission subsidiary Jatco is realigning capacity to other products, but President Teruaki Nakatsuka said "there is no effect on our factories' production operations."

(Nikkei)

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