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Nissan to slash Japanese production in May due to chip shortage -sources

TOKYO (Reuters) -Nissan Motor Co will slash production at severalfactories in Japan next month due to a critical shortage ofsemiconductors, three sources with direct knowledge of the plantold Reuters on Thursday. Japan’s third-largest automaker will idle its factory inKyushu, southern Japan, for eight days between May 10 and 19,the sources said, declining to be identified because the plan isnot public.

The plant, which assembles the Serena minivan,X-Trail SUV and other models, will aim to make up for lostproduction once the supply of chips returns, the people said. Two other domestic assembly plants, the Oppama plant and a Nissan (OTC:NSANY) Shatai factory in Kyushu, will cancel the night shift over 15 days between May 10-28, and a fourth factory in Tochigi, eastern Japan, will idle for 10 previously unplanned days next month, the sources said.

Nissan did not immediately respond to a request for comment

on the production adjustments.

Chip shortages resulting from winter storms as well as

a fire at a Japanese chip-making factory have cost the global

auto industry tens of thousands of vehicles in lost production,

with the heaviest impact in North America.

The chip scarcity is also a result of an increased demand

from the consumer electronics industry as people worked from

home and played more video games during the health crisis. Sanctions against Chinese technology companies have also played a role.

Many Japanese auto factories are due to be closed for nearly

two weeks as part of the “Golden Week” holidays starting in late

April. With the latest decision, Nissan’s Kyushu factory will

only operate for seven days, the sources said.

Nissan USA earlier announced production adjustments for its North American operations.


Source: Economy - investing.com

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