Nissan to make 500,000 fewer cars due to lack of chips

Nissan CEO Makoto Uchida has revealed that the company will be making fewer cars this year due to the global semiconductor shortage. According to a CNBC report, the problem is also compounded by a steady increase in raw material prices.

Uchida-san said Nissan’s global production output will be down by approximately 500,000 units, but the automaker is planning countermeasures to get production back up on track. It’s unclear how Nissan plans to overcome this hurdle, but other automakers like those within the PSA Group and GM have resorted to omitting high-end features and using conventional, tried-and-tested systems instead.

Analysts predict that the semiconductor crisis will last well into 2022, possibly into 2023. The historic shortfall in chips supply has forced many automakers to cut back on production, and experts believe this will result in millions of vehicle sales to be lost this year alone.

Earlier this month, Taiwan Semiconductor Manufacturing Company (TSMC) chairman Mark Liu told CBS that his company can only begin to meet auto clients’ minimum requirement by June. With no cars to produce, Jaguar Land Rover has temporarily halted manufacturing operations at its Castle Bromwich and Halewood plants, two months after announcing that it was going to cut 2,000 non-factory jobs.

Meanwhile, Daimler said it was pausing production at two of its plants in Germany for at least a week, and that it would be cutting the hours of up to 18,500 workers.

The post Nissan to make 500,000 fewer cars due to lack of chips appeared first on Paul Tan's Automotive News.

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