Nissan's Production Woes: Chip Crisis and Impact on Operations

Nissan will reduce production by 1,400 vehicles at its Kyushu plant due to chip supply disruptions associated with Nexperia. This follows an earlier 900-vehicle production cut. The company aims to stabilize operations and minimize delivery impacts, while also facing setbacks at its Oppama plant due to component shortages.

Nissan is set to reduce its vehicle production by 1,400 units at its Kyushu plant next week, marking the latest setback from ongoing semiconductor shortages. These disruptions are linked to Chinese-owned Nexperia, adversely affecting Nissan's domestic production capabilities.

Previously, the automaker cut production by 900 vehicles at the same facility. Key models affected include the Serena minivan and Rogue SUV (branded X-Trail locally). Although Nissan strives to lessen delivery disruptions, its struggle is compounded by a substantial 16.5% drop in retail sales during the first fiscal half-year in Japan.

In a parallel development, Nissan's Oppama plant near Tokyo will face similar reductions, producing fewer Note compacts over consecutive weeks. Despite some automakers finding solutions to navigate the chip shortage, such as Honda in North America, Nissan's production plans for December remain tentative amid evolving supply dynamics.

(With inputs from agencies.)