Nissan Idles Plant on Pemex Blast; Honda Cuts Output (Update1)

July 11 (Bloomberg) -- Nissan Motor Co. idled its plant in central Mexico and Honda Motor Co. pared output after an explosion at a state-owned pipeline interrupted natural gas supplies.

Nissan plans to resume work tomorrow after a two-day shutdown at the Aguascalientes factory, which produces about 1,300 vehicles daily, spokesman Diego Arrazola in Mexico City said in an interview today. The plant assembles Sentra and Versa small cars for the U.S., Mexico and Canada, as well as Platinas for the Mexican market, he said.

Honda's El Salto plant, which produces 120 Accord sedans daily, is operating at 60 percent capacity today because its natural gas supply has been irregular since yesterday's blast on a Petroleos Mexicanos pipeline, spokesman Eduardo Aragon said.

A Mexican guerrilla group claimed responsibility for yesterday's bombing as well as blasts on a different pipeline last week. The rebels are demanding the return of missing members whom the government says aren't in federal custody.

Honda idled the El Salto plant for two days last week after the initial explosions, Aragon said. Honda loses as much as 4 million pesos ($369,720) for each day of missed production, he said.

Shares of Tokyo-based Nissan fell 1.9 percent to 1,305 yen in trading in Tokyo. Shares of Honda, also based in Tokyo, dropped 1.3 percent to 4,470 yen.


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