Source: Ford hybrid production will be impacted by Japan earthquake

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A Japanese battery supplier contact tells us that the Ford Fusion and Escape hybrids will almost certainly have production issues because of Japan's devastating earthquake and subsequent tsunami, but Ford says it has no reports of any shortages.

The batteries for the Fusion, Escape and their twins are made in Japan by Sanyo, while their continuously variable transmissions are built by Jatco. Automakers and several suppliers there have halted production as the country deals with the damage from the quake and rotating blackouts.

Ford denied it had any supply issues with its hybrids, saying the Sanyo plant in southern Japan was not damaged. "At this point we're not seeing any parts shortages as a result of the situation there," said spokesman Todd Nissen.