Nissan to cut production in October and November due to chip shortage

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Nissan to cut production in October and November due to chip shortage

TokYO - - Nikkei will reduce planned global production for October and November by 30%, Nissan Motor learned Thursday, as the worldwide chip shortage persists.

The Japanese automaker recently informed suppliers of its updated plan to make 263,000 vehicles in November and 320,000 vehicles in October. Both numbers undershoot the previous outlook by 30%.

Nissan had stalled U.S. plant operations for two weeks in August due to stalled semiconductor output in Malaysia. But the pace of production through September exceeded forecasts, due in part to Nissan's initial estimates being more conservative than other companies.

Nissan had contained the negative impact of the chip shortage to an extent, with the production plan from October calling for an increase in output compared to the previous year.

Other automakers decided to ramp up production as well, resulting in tightened supplies of semiconductors. That forced Nissan's latest move to trim output compared to its previous plans.

Honda Motor also revealed Thursday that it expected to cut production by 10% at each of its three Japanese vehicle assembly plants in early November.

Domestic production is already being reduced on average by 30% this month. Output at the Suzuka plant in Saitama Prefecture is down by 40%, while the Sayama plant in Mie Prefecture is witnessing a 20% drop.

The third plant, Yorii plant in Saitama, was not due for any production cuts in October, but the facility ended up scaling back by 10% due to the lack of semiconductors.