Japanese automaker Nissan Motor said this week that some of its suppliers in the country are still reeling from this month's 9.0-magnitude earthquake and tsunami that devastated the country, including the northeast region where the majority of auto manufacturing is located.
Nissan chief executive Carlos Ghosn said that 40 component suppliers in Japan are facing disruptions to their daily activities following damage inflicted by the natural disasters. Japanese authorities are still battling fires at a nuclear facility in the hard-hit northeast part of the country and there are reports surfacing that agricultural products and some drinking water have been exposed to high doses of radiation.
According to Ghosn, electronics components, plastics and rubber are in short supply in the country and will ultimately affect Nissan's manufacturing capacity - as well as other automakers that rely on the country's manufacturing facilities. "This is serious and it's still difficult to evaluate," Ghosn said in an interview. "You have the earthquake, you have the tsunami, rolling blackouts and fuel shortages hitting at the same time, and they aren't only hitting the car manufacturers, but also the suppliers and the dealers."
Japan relies on nuclear power for about one-third of its energy, according to analysts; the country is grappling with electricity outages and transportation issues after trains and roads were hit.
Nissan chief executive Carlos Ghosn said that 40 component suppliers in Japan are facing disruptions to their daily activities following damage inflicted by the natural disasters. Japanese authorities are still battling fires at a nuclear facility in the hard-hit northeast part of the country and there are reports surfacing that agricultural products and some drinking water have been exposed to high doses of radiation.
According to Ghosn, electronics components, plastics and rubber are in short supply in the country and will ultimately affect Nissan's manufacturing capacity - as well as other automakers that rely on the country's manufacturing facilities. "This is serious and it's still difficult to evaluate," Ghosn said in an interview. "You have the earthquake, you have the tsunami, rolling blackouts and fuel shortages hitting at the same time, and they aren't only hitting the car manufacturers, but also the suppliers and the dealers."
Japan relies on nuclear power for about one-third of its energy, according to analysts; the country is grappling with electricity outages and transportation issues after trains and roads were hit.
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