10:31 19-11-2025

Nissan cuts Kyushu plant output as chip dispute hits supply

Nissan is facing a fresh bout of supply chain turbulence, trimming output at its Kyushu plant by another 1,400 vehicles. The cut stems from continuing chip supply issues linked to Chinese manufacturer Nexperia, now at the center of a dispute between the Netherlands and China. It is another reminder of how exposed carmakers remain to geopolitics around semiconductors.

It is the second reduction in short order: a week earlier, production was pared by 900 units. The latest limits will touch the Serena and the popular Rogue/X-Trail crossover. Nissan said it was making the necessary adjustments and would try to minimize delays for customers, but did not share further details.

The setback deepens an already challenging spell for the brand. In the first half of the financial year, Nissan’s sales in Japan fell by 16.5%. In parallel, output of the Note at the Oppama plant will be reduced, and plans for December remain uncertain. For a production system tuned to tight schedules, that uncertainty leaves little slack.

Amid the crunch, other automakers are pursuing workarounds. Honda, for example, is preparing to restore normal operations in North America after a partial recovery in supplies. Nissan, however, cautions that its outlook remains tough: the company expects a full-year operating loss of 275 billion yen, citing U.S. tariffs, chip shortages, and logistics strains. Even with incremental improvements in supply, those headwinds keep the road ahead narrow.