Japanese carmaker Nissan plans to reduce production at three of its plants in July due to the ongoing global semiconductor chip shortage.
The company plans to stop production at its Tochigi factory for three days in July. The carmaker will cut down the ouptut and cancel the night shift at two plants in Kyushu for a specified period next month, media reports indicated. Its Oppama plant has also canceled the night shift since last month and will continue with these adjustments into next month.
Nissan stated that the chip shortage may affect the production of about 500,000 vehicles in 2021.
Makoto Uchida, the automaker’s chief executive said at the company’s annual general meeting held on Tuesday that the company was aiming to reduce the chip shortage’s negative impact. He added that the automaker was attempting to compensate for the production decline within the fiscal and take action to ensure parts supply stability.