Nissan cuts production planned for October and November by 30% – Nikkei

The Nissan Motor Corp. brand logo. is seen on the front end of the company’s new Ariya all-battery SUV during a press preview ahead of the world premiere at the Nissan Pavilion in Yokohama, south of Tokyo, Japan on July 14, 2020 REUTERS / Issei Kato

TOKYO, Oct.22 (Reuters) – Nissan is slashing global production slated for October and November by 30% as it grapples with a semiconductor shortage caused by the COVID-19 pandemic, the Nikkei business daily reported.

The Japanese automaker has informed its suppliers that it will build a total of 583,000 cars over the two-month period, the Nikkei said, without saying where it got the information.

“We recognize that the semiconductor supply shortage is still in dire straits,” a Nissan spokeswoman said, though she declined to comment on the reduction reported by the newspaper. The company will give an update when it releases its latest results next month, she added.

Like other automakers, Nissan has been forced to cut production despite a rebound in demand in major auto markets, including China and the United States. The pandemic has both reduced the output of component suppliers and fueled demand for electronic devices, which has increased competition for chips.

Toyota Motor Corp (7203.T), the world’s largest automaker, this month announced a 15% drop in production in November, following a drop in global production in September and October, due to a slowdown in component factories in Malaysia and Vietnam.

Reporting by Tim Kelly and Maki Shiraki; Editing by Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.

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