The global chip shortage continues to wreak havoc on global auto industry supply lines. And one of the carmakers that have been greatly impacted by the crisis is Nissan, which is estimating it will produce significantly fewer units in 2021.
According to a report by CNBC, the Japanese brand is predicting that it will manufacture 500,000 fewer cars this year due to the ongoing chip shortage. Nissan CEO Makoto Uchida shared the news during a recent interview with Squawk Box Europe.
“The impact we foresee as of speaking is about 500,000 units in terms of the production this year,” Uchida shared, saying is taking steps to normalize production during this crisis.
This isn’t the first time news outlets have reported that Nissan is taking a hit because of the chip shortage. In February, Reuters reported that the company had lowered its sales target for the current financial year by 3.6%.
Nissan is hardly the only carmaker making adjustments to cope right now. Brands like Ram, Renault, and Peugeot have already had to cut back on the tech they pack into their offerings, and some companies are reportedly resorting to lawsuits to fulfill the demand for semiconductor chips. Ford, Volkswagen, and Stellantis have also reportedly warned of production shortcomings due to the chip shortage.