Nissan Halts Japanese Plant Over Coronavirus Issue
February 11th, 2020It’s astonishing to see very major cities like Beijing, Shanghai and Shenzhen mostly shut down.
What will be the economic cost of this situation to China, and the world?
I haven’t seen much information yet about the implications to global supply chains, but there was this piece from Forbes, Coronavirus Hits Electronics Manufacturing Hard, Companies Are Scrambling:
Supply chains are complex, and after decades of lean manufacturing, it’s no longer common for factories to store weeks of parts inventory to feed their assembly lines. Keith shared, “We are already seeing the ramifications of the delay in factories restarting, as Hyundai recently announced it is idling a production facility in Korea for lack of components from factories in China. This same situation is likely to play out thousands of times in dozens of countries over the next 60 days as existing component inventories are depleted and Chinese factories are delayed in their ability to replenish them.”
I’ve already felt the effects in a small way. I had an Asus motherboard fail on me back in December of last year. It was under warranty, so I sent it in for repair. I was initially given an ETA of three weeks, so third week of January. I didn’t get it back and now they’re saying two or three weeks more. Needless to say, I’m not holding my breath.
Via: Cnet:
Nissan will reportedly suspend auto production at a Kyushu plant owing to parts shortages stemming from the coronavirus outbreak. The company is the first automaker in Japan to reveal such a temporary stoppage at one of its domestic plants owing to the global health crisis.
More: Coronavirus: The economic cost is rising in China and beyond
