Nissan's U.S. plant to cut production due to lack of cores, or lose 9,000 units
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Update time : 2022-11-14 09:23:47
Nissan Motor USA said on Nov. 9 that supply chain problems will force it to reduce production at the company's Canton, Mississippi, assembly plant this month.
Nissan said it will cut some production days for its Titan and Frontier pickups, as well as the Altima sedan, in November. media reported earlier that Nissan would see similar production cuts this December. A memo from Nissan to dealers obtained by the media shows that the production cut is due to "supply chain disruptions related to the ongoing semiconductor chip shortage in the industry.
Nissan told dealers that despite the production cuts, "total shipments to retailers are expected to increase quarterly. The company also said, "Sales of the market's long-awaited next-generation Nissan electric vehicle will begin before the end of the year." Nissan aims to have 40 percent of its sales come from electric models by 2030.
Nissan declined to say how much production the company will lose as a result of this production cut. Nissan's sales in the U.S. fell 31 percent year-over-year to about 538,000 units as of Sept. 30 this year.
In an email to dealers, Nissan said, "Total Nissan dealer inventory has more than doubled in the last 60 days and is up (about) 70 percent compared to the same period last year."
Sam Fiorani, head of production forecasting at market researcher AutoForecast Solutions, estimates that the shutdown will cause Nissan to lose production of about 9,000 vehicles during November and December, and possibly more. The ongoing chip supply shortage has affected a number of industries over the past two years, including automobiles, home appliances and video game consoles.
