GM Could Cut Production as Parts Become Scarce

7 years ago by in Around the world

Photo by richardefreeman

Toyota is not the only automaker to have been hit by the March 11 earthquake. In the last few weeks Nissan and Honda have announced production cuts, and General Motors has joined the list of company struggling to find important components.

The news about General Motors shows just how wide reaching the twin disasters in All Japan news has been on the global supply chain. The Wall Street Journal reported Thursday that the car manufacturer is taking steps to optimize production in North American plants, which could include temporary suspensions. Despite the struggles, GM said they are confident the supply problems will not impact their yearly production figures.

Although manufacturing plants are staring to reopen after the March 11 earthquake and tsunami, there could be a long-term impact as companies turn search for other supply opportunities. Nissan announced that it will increase its North American production and rely more on local supplies for their parts. The auto company said they want to increase the use of North American parts by 85 percent, which is up from its current rate of 65 percent. [WSJ] [PN]

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