Nissan to reinforce the foundation of its engine factory in Japan

Article by Christian Andrei, on May 17, 2011

Nissan Motor Co. is planning an investment of 3 billion yen ($37 million) to strengthen the foundation of its engine factory in Iwaki, Fukushima prefecture. The earthquake in Japan on March 11 had disrupted production at this factory. CEO Carlos Ghosn revealed that Nissan has actually already begun work on the foundation.

He said that Nissan aims to also reinforce the foundations of its other factories in Tochigi (north of Tokyo) and Yokohama (west of Tokyo).

As the earthquake damaged plants and power plants resulting to the shortages of parts and electricity, carmakers like Nissan, Toyota Motor Corp. and Honda Motor Co. have had to suspend production.

These three companies have all said that the recovery came faster than anticipated. Satoru Takada, a Tokyo-based analyst at TIW Inc. in Tokyo, believes that carmakers going back to normal operations is “positive” since they can “see the bottom of production and business performance.”

On May 13, Nissan said that damage at the Iwaki plant had been repaired. Partial production at this plant resumed on April 18. Ghosn disclosed that this factory, which recovered two weeks faster than anticipated, is currently operating at 50% production level since it still lacks parts.

Nissan’s move to reinforce its foundations came after Prime Minister Naoto Kan had requested Chubu Electric Power Co. to close down a nuclear plant in Shizuoka prefecture located west of Tokyo.

Topics: nissan, japan

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