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Japan auto parts maker revamps supply chain to fight chip crunch

Nissan-backed Jatco takes aim at shortage that has slowed car industry

Jatco's plant in Shizuoka Prefecture in December 2018. The company's CEO says chip supplies remain tight and are still “very far from what the automotive industry had expected.” (Photo courtesy of Jatco)

TOKYO -- As a microchip shortage sends shock waves through the global car industry, one of Japan's main auto parts makers says it wants to swerve the risk of becoming a production "bottleneck" by revamping the way it manages its supply chains.

The head of automatic transmission producer Jatco told Nikkei Asia in an interview that the company is pushing to make sure it always has enough chips and other key components by placing bigger orders and signing contracts with suppliers earlier than usual.

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