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Production Halt For Nissan And Suzuki Motor In June Due To Chip Shortage – Reports

Production Halt For Nissan And Suzuki Motor In June Due To Chip Shortage – Reports
The Japanese cat making majors Nissan Motor Co and Suzuki Motor Corp are being forced to temporarily halt production at some of their factories because of the global chip shortage, said reports quoting sources with direct knowledge of the plans.
Multiple sources were quoted in the reports saying that plans of stopping production at its factory in Kyushu, southern Japan, for a period of three days on June 24, 25 and 28 is being taken by Nissan Motor Co while it is also making production adjustments throughout the month at its Tochigi and Oppama plants in Japan.
The sources further reportedly said that production of some of its models at its Mexico plant will be made by another Japanese car maker Nissan. 
"A global shortage of semiconductors has affected parts procurement in the auto sector. Due to the shortage, Nissan is adjusting production and taking necessary actions to ensure recovery," a Nissan spokeswoman said.
None of the sources quoted in the reports were disclosed because of private nature of the issue.
The report further said that three plants in Shizuoka prefecture will be idled and production will be stopped from three to nine days by Suzuki Motors.
Suzuki Motor spokesman said that the plan "has not been confirmed". The spokesman said explained that the auto maker is also continuing to make adjustments to minimise the impact of the chip shortage even though the company has provided its provisional production plan to auto part makers in the supply chain.
In another development, reports claimed that production reduction of 30,000 vehicles in total in June at five plants in Japan, Thailand and Indonesia will be done by Mitsubishi Motors, said a spokeswoman of the company. She added the impact of the chip shortage in the business had already been factored in by the company into its earnings outlook for the current fiscal year.

Christopher J. Mitchell

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