Report on the Impact of Flooding in Thailand on Nissan Operations (Report #3)



Report on the Impact of Flooding in Thailand on Nissan Operations
(Report #3)

The following is an update regarding the impact to Nissan operations caused by the floods in Thailand since early October.

Operations at Nissan Motor Thailand (NMT) plant

  • Nissan’s plant at Samut Prakan remains unaffected by the flood to date and all possible measures have been taken to strengthen the plant’s flood defenses.
  • Due to shortages in parts supply, production at the plant remains suspended, but Nissan is working to resume production of most models starting on November 14.

Impact on production and operations outside of Thailand

  • The estimated total production loss in Thailand due to the floods is 40,000 units, based on Nissan’s plan to resume production on Nov.14th.
  • To date, the flood impact to the supply chain has not impacted production at Nissan facilities outside of Thailand.
  • Nissan has good visibility to protect production at its major sites in North America, Europe, and China from the flood impact, based on all the countermeasures worked out so far with suppliers. However, in Japan, Nissan still sees a remaining risk of 20,000 units of production loss. The Nissan teams, together with suppliers, are working to minimize this impact.
  • Currently, there is a delay in the delivery of certain vehicles due to the production hold in Thailand. However, preparations are underway to resume the ramp-up production of models beginning on November 14, thereby reducing delays.

Support for Flood Relief Efforts

  • Nissan has decided to expand its support efforts to the devastated area. In addition to the 11.5 million yen donation already announced on October 20th, Nissan pledged to donate an additional 40 million yen in cash, as it believes that the area needs support in the longer term. Nissan will donate a total of 51.5 million yen in cash and in-kind contributions to support the area.

Nissan is working closely with its suppliers to resume parts supply and return to production as quickly as possible in order to minimize any inconveniences to our valued customers.

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