GM Korea Co. said on Monday it will cut production to prepare for a possible lack of automotive parts from Japan after the recent earthquake and tsunami there, following a similar decision by Renault SA’s subsidiary in South Korea.
While the moves are pre-emptive, they show how the twin disasters in Japan threaten the supply chain for South Korean companies that depend on Japanese companies for parts. Renault Samsung and GM Korea both import core engine parts and transmissions from Japan.
(Source: The Wall Street Journal Online)