Nissan to cut Japanese production in May over chip shortage

by SpeedLux
Nissan Kyushu plant in Japan

Nissan Motor is set to cut production at some factories in Japan by next month, three sources with direct information of the plan informed Reuters on Thursday.

The automaker will idle its factory in Kyushu, Japan, for eight days between May 10 and 19, the sources said.

The plant, which makes the Serena minivan, X-Trail SUV and other models, will be making up for lost production once the supply of chips returns, according to sources.

Two other regional assembly plants, the Oppama plant and a Nissan Shatai factory located in Kyushu, will cancel the night shift over 15 days between May 10-28, and the fourth factory located in Tochigi, is going to idle for 10 previously unplanned days next month, the sources said.

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

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies.

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

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