Tuesday, May 24, 2022
News Nissan will Cut Production by 30% in October and November due to...

Nissan will Cut Production by 30% in October and November due to Chip Shortage

Japanese manufacturers will have to cut production in October

  • Nissan will reduce its production in Japan by 30% for two months

  • The company had planned to increase production in October

  • Other automakers in Japan are also reducing production

The global chip shortage is still a huge problem for automakers despite the situation getting better over time.

Nissan has announced it will cut its production in Japan by 30% for the remainder of October trough the end of November.

The automaker had planned to increase its production in October due to the increasing supply of electronic chips, but other automakers are also trying to ramp up production, which means Nissan will have to cut back once again for about a month and a half.

The shortage seems to be hitting Japanese factories harder than before at the moment since the company will have to reduce production in the country by about 30%, while its American factory in Tennessee is exceeding the manufacturer’s expectations.

Nissan is not the only Japanese car company to feel the effects of the shortage, since Honda will also need to cut back production by 10% at each of its 3 factories set in its home country.

This is in addition to the cuts already made for October to the order of 40% at its Suzuka plant, 20% at Sayama and 10% at Yorii.

Surprisingly, Toyota is doing pretty well since it has been able to manage its supply of components in a way that allows it to continue production at a level higher than its competitors. The automaker is even expecting to manufacture about the same number of vehicles in November as it did a year prior, about 820,000 units.

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