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BMW, Nissan suffer production delays due to volcano woes

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BMW, Nissan suffer production delays due to volcano woes

04/20/2010, 3:06 PM BY MARK KLEIS

Automotive parts that are crucial to BMW and Nissan production have now joined the many passengers currently grounded in Europe due to the Icelandic volcano eruptions. BMW is idling three plants in Europe and is also reporting a parts shortage at its Spartanburg County plant. Nissan is facing delays for its Cube, Rogue and upcoming Juke crossover due to a pneumatic sensor that is typically air-freighted.

Both BMW and Nissan are reporting forced reductions in production as a direct result of the recent volcanic activity in Iceland, which has grounded virtually all flights in and out of Europe.

Nissan faces production delays

According to the Wall Street Journal, Nissan has been forced to suspend production for its Cube, Rogue and upcoming Juke crossover due to an inability to airlift parts from an Ireland-based supply point. The part in question is a pneumatic sensor that is common across the three vehicles, all of which are exported to American buyers.

Due to the nature of the delays, Nissan is unsure how long production will be affected, but points out that a single day’s delay caused a 2,000 unit shortage.

BMW faces similar woes

According to Bloomberg, German automaker BMW is has been forced to temporarily stop production at three German plants. The stoppage at the three factories comes as a direct result of the ban of flights in Europe, resulting in a parts shortage.

The Dingolfing plant, which produces the 5-Series and 7-Series sedans, along with the Munich plant which assembles the 3-Series, and the Regensburg plant that produces the 1-Series and Z4 will all be idled. BMW hopes to resume production by April 23, but expects a shortage of 7,000 vehicles as a direct result of the stoppage.

In BMW’s case the loss of air freight has affected the delivery of vehicle electronics and interior components that are essential to production.

In addition to the stoppage of three European plants, BMW may also forced to idle the plant located in Spartanburg South Carolina. BMW says that is trans-Atlantic flights resume within the next two days they will be able to keep the plant open, but if delays continue, they will be forced to idle the South Carolina plant as well.



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