Nissan to slash production at Kyushu plant amid ongoing chip supply disruptions
Nissan Motor Co. Ltd. will reduce output by an additional 1,400 vehicles at its Kyushu plant next week due to ongoing chip supply issues linked to Chinese-owned Nexperia, a source familiar with the matter said. The move follows a 900-vehicle cut last week.
The production cuts will affect the Serena minivan and the Rogue SUV (known in Japan as the X-Trail). The Kyushu plant, operated by Nissan Motor Kyushu in Fukuoka prefecture, had resumed normal operations earlier this week but will scale back output starting November 24. Nissan said the plan could still change if alternative chip supplies are secured in time, News.Az reports, citing Reuters.
A Nissan spokesperson stated, "We are taking necessary production adjustments to manage associated risks" and confirmed that the company is working to minimize impacts on customer deliveries.
Nissan’s Oppama plant near Tokyo will also produce fewer Note compact cars for the second consecutive week, with production plans for December still under review.
The disruption comes as Nissan faces a 16.5% drop in retail sales in Japan for the first half of the fiscal year, amid concerns over its financial situation. Globally, several automakers have faced similar production slowdowns due to Nexperia-related chip shortages, though some, like Honda, are resuming normal operations after securing sufficient supply.
The supply issue stems from a geopolitical dispute: Nexperia, headquartered in the Netherlands, was placed under Dutch government control in September over national security concerns. Beijing temporarily banned exports from the company’s Chinese plant, triggering production interruptions worldwide. Nexperia says it is offering alternative sourcing options to ease the impact.
Nissan also warned of broader financial pressures, expecting a 275 billion yen ($1.78 billion) operating loss in the fiscal year ending next March due to U.S. tariffs, chip disruptions, and other supply chain challenges.
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