Nissan to cut more output at Kyushu plant on chip supply troubles

Japan’s Nissan will cut production by another 1,400 vehicles at its Kyushu plant next week, as the fallout from chip supply disruptions linked to Chinese-owned Nexperia continues to affect its domestic operations, a person familiar with the matter said.

The move follows a 900-vehicle reduction in output last week. Cuts this time will include the Serena minivan, as well as the Rogue SUV, known locally as the X-Trail, said the person, who declined to be named because the information is not public.

Nissan Motor said in a statement that it would work to minimise any impact on customer deliveries once supplies stabilise.

“We are taking necessary production adjustments to manage associated risks,” it said, declining to provide more details.

The disruption comes at a bad time for Nissan. It reported a 16.5% plunge in retail sales in Japan for the first half of the fiscal year, fuelled by customer worries over its financial situation.

The Kyushu plant, operated by subsidiary Nissan Motor Kyushu in Fukuoka prefecture, resumed normal operations on Monday, but will scale back output again starting from Nov 24, according to the person.

The plan may still change if the company addresses the chip supply situation in time, such as by securing alternative components.

Separately, Nissan will produce fewer Note compacts than initially planned at its Oppama plant near Tokyo for the second week running, the person said, adding that production plans for December at both plants were still under review.

Several automakers globally have had to scale back or halt production due to the interruptions from Nexperia, though some have found workarounds.

Honda said on Tuesday it would begin resuming normal operations at its North American plant from Monday after securing a certain level of chip supply.

Nexperia said on Friday it was continuing to offer alternative sourcing options to ease the impact of a dispute between the Netherlands, where the company is headquartered, and China.

Nexperia was placed under Dutch government control in September over national security concerns, triggering a temporary ban on exports from its Chinese plant by Beijing, leading to the disruption.

Nissan said last month it expected to book a US$1.78 billion annual operating loss in the year through next March due to US tariffs, the chip disruption and other supply issues. REUTERS

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