The semiconductor shortage continues to be a drag on auto production nearly two years after the global crisis flared up during the pandemic.
Nissan on Tuesday warned U.S. dealers of production stoppages at its North American vehicle assembly plants through the end of the year.
“External factors continue to impact our business,” Nissan division’s U.S. sales chief, Judy Wheeler, said in a memo obtained by Automotive News. “Due to supply chain disruptions related to ongoing semiconductor chip shortages in the industry, Nissan is adjusting production schedules” for November and December.
The work interruptions will primarily affect Frontier, Titan and Altima output, “with minor adjustments in other models,” the memo said.
Since January, Nissan has pulled about 20,000 vehicles from production because of chip-related stoppages, according to AutoForecast Solutions data.
The supply chain crisis has tapped the brakes on Nissan Motor Co.‘s sales recovery in the key U.S. market this year. Sales here tumbled 31 percent in the first nine months of 2022.
A separate supplier memo obtained by Automotive News specifically outlined cuts at Nissan’s Canton, Miss., factory.
Line 1, which assembles the Titan full-size and Frontier midsize pickup, will run production four days per week for the rest of November. Production of the low-selling Titan ends in late 2024.
Line 2, which builds the Altima midsize sedan, will run production two days per week this month. Nissan could replace the gasoline-powered Altima with an electric model around mid-decade.
Thanksgiving week will be a nonproduction week.
The December production schedule is expected to be similar to November’s.
Nissan projects overall dealer shipments to increase “quarter over quarter” despite the planned production cuts.
The Canton plant is gearing up to build electric vehicles. Nissan will initially build two battery-powered sedans — a Nissan model and an Infiniti — starting mid-decade. Plans also call for two electric crossovers — one for each brand — to be built at the 4.7 million-square-foot factory, according to a source.