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Nissan Institutes Work Stoppages in Mexico for Parts of October

The ongoing semiconductor chip shortage has already driven the automaker to idle plants several times this year.

Image source: Nissan Motor

Nissan Motor Co Ltd (OTC: NSANY ) will pause production at two Mexican plants for several days this month due to the ongoing shortage of semiconductor chips.

On Wednesday, Reuters reported that operations will halt for 11 days at Nissan’s plant in Aguascalientes and for 8 days at its Morelos factory.

In a statement, Nissan said, “We continue to make adjustments to our production process to minimize the impact [the chip shortage] has had on the automotive industry locally and globally.”

The Japanese automaker has already been forced to idle plants several times this year due to the semiconductor shortage.  

Over the past year, the shortage of chips — which go into modules used to control everything from brakes to dashboard touch screens — has forced several automakers, including Honda, Ford and General Motors, to cut production while they try to replenish supplies. The latest wave of coronavirus outbreaks tied to the Delta variant has further slowed production in the auto industry. 

Nissan’s latest shutdown comes a few days after it reported a 10% decline in US sales in the third quarter. 

GM, Honda and Stellantis also recently posted significant drops in sales for the same period, according to The New York Times

The shortage — which analysts believe could drag on well into 2022 and possibly into 2023 — is expected to cost the global automotive industry $210 billion in revenue this year.  

In July, Nissan said it would manufacture 500,000 fewer vehicles this year but hoped to make up for production and sales losses during the latter half of the fiscal year ending March 2022. 


Source: Equities News

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