Nissan cuts Chinese output by 75%

A shortage of auto parts has caused Nissan to cut output by 75 percent at one of its Chinese plant even as the Japanese auto maker further suspended production in its home market following the devastating earthquake, according to media reports.

The production capacity of Dongfeng Nissan's Xiangfan plant has been slashed to 82 units per day, a sharp fall from its designed capacity of 304 vehicles, Xinhua news agency said Monday.

The Japanese car maker's inventory is dwindling rapidly after key car components, including engines and transmission, experienced tight supply after the 9.0 magnitude quake and tsunami hit Japan, it added.

The Chinese auto industry is feeling the ripple affect of Japan's earthquake as major Japanese auto makers announced plans to further shut down plants due to a delay in the deliveries of key spare parts.

Nine factories of Toyota had to cease operating after it restarted production of the Prius and two Lexus hybrids in Japan last week. Honda Motor Co extended its shutdown of car output till Sunday.

Dongfeng Nissan said in an earlier statement it did not expect production till end of this month to be affected. "But future production is likely to be affected as suppliers were hit hard and an electricity shortage may dampen efforts to restore production in Japan," it said.

Guangzhou Honda yesterday said its factories still work on two shifts a day that may last until early April. "We are making all-out efforts to ensure the supply to China is a top priority," a company official said.