Nissan to scrap Japanese production in May citing chip shortage -sources
June 24, 2021
Business

Nissan to cut down Japanese production in May due to chip shortage -sources

TOKYO (JAPAN) -Nissan Motor Co will cut down production at several factories in Japan next month citing critical shortage of semiconductors, three sources with direct knowledge of the plan told on Thursday. It will make its factory passive in Kyushu, southern Japan, for eight days between May 10 and 19, as told by the sources, declining to be identified because the plan is not public.

The plant, which assembles the Serena minivan,X-Trail SUV and other models, will aim to make up for lots of production once the supply of chips returns, the people said. Two other domestic assembly plants, the Oppama plant and a Nissan Shatai factory in Kyushu, will cancel the night shift over 15 days between May 10-28, and a fourth factory in Tochigi, eastern Japan, will idle for 10 previously unplanned days next month, the sources said.

Chip shortages resulting from winter storms as well asa fire at a Japanese chip-making factory have cost the global auto industry tens of thousands of vehicles in lost production, with the heaviest impact in North America.

The chip scarcity is also a result of an increased demand from the consumer electronics industry as people worked from home and played more video games during the health crisis. Sanctions against Chinese technology companies have also played a role.

Many Japanese auto factories are due to be closed for nearly two weeks as part of the “Golden Week” holidays starting in late April. With the latest decision, Nissan’s Kyushu factory will only operate for seven days, the sources said.

Nissan USA earlier announced production adjustments for its North American operations.

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