• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • Week Ahead: Chicago … that Toddling Town
  • The Rearview Mirror: Tailfins Take Flight
  • TikTok Reveals the Hottest EVs in the Industry
  • Millions of Older Hyundai, Kia Owners May Face Trouble Getting Car Insurance
  • Bugatti Chiron Profilée Sets New Auction Sales Record
  • Another Delay for VinFast Customers
  • Ford Making Return to Formula One for 2026 Season
  • Ford CEO Farley “Frustrated” by $2 Billion Loss for 2022
  • Hyundai Ioniq 6 Achieves EPA-Estimated 361-Mile Range
  • Nissan’s Virtual EV Convertible, the Max-Out Reappears in Sheet Metal Form
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Lexus GX 460 Black Line
    • A Week With: 2023 BMW X1 xDrive28i
    • A Week With: 2023 Kia Niro EV
    • A Week With: 2023 Hyundai Palisade Calligraphy
    • A Week With: 2023 Ford F-150 Raptor R 4x4 Super Crew
    • A Week With: 2023 Genesis Electrified G80 AWD
    • A Week With: 2023 Land Rover Defender 110 V-8
    • First Drive: 2023 Honda Pilot TrailSport
    • A Week With: 2023 Jaguar F-Type R Coupe
    • A Week With: 2023 GMC Yukon Denali Ultimate
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > Nissan, Honda Slash Production Due to Chip Shortages as GM, Daimler, Others Warn of Similar Moves

        Nissan, Honda Slash Production Due to Chip Shortages as GM, Daimler, Others Warn of Similar Moves

        Automakers face competition with consumer goods for semiconductors.

        Paul A. Eisenstein
        Paul A. Eisenstein , Publisher & Editor-in-Chief
        Jan. 08, 2021
        Nissan said it will be cutting production of the Note at its Oppama plant in Japan due to the semiconductor shortage.

        This story has been updated with new information.

        Nissan and Honda have been forced to cut vehicle production due to a worsening shortage of the semiconductor chips required in ever increasing numbers for today’s high-tech vehicles, with other manufacturers, including General Motors, Daimler, Volkswagen and Renault, warning they may need to take similar steps.

        To operate their infotainment, advanced safety and powertrain control technologies, automakers require substantial numbers of chips for every vehicle, but experts warn they are facing increased competition from consumer electronics companies and other users amidst a shortage of supply.

        “A global shortage of semiconductors has affected parts procurement in the auto sector,” Nissan said in a statement. “As a result of this shortage, the Oppama Plant in Japan will adjust production in January, reducing production of the Nissan Note.”

        (Volvo set to increase EV capacity as sale surge.)

        The problem isn’t just limited to foreign makers in their home countries. Ford revealed Friday it will send home 3,900 employees at its Louisville Assembly Plant for a week due to the chip shortage. The workers build the Ford Escape and Lincoln Corsair. It’s the only Ford plant impacted at this point.

        Honda officials said that they have enough semiconductors to get through the month.

        American dealers could soon see shortages as other automakers prepare to trim production due to chip shortages. And that would happen just as the industry is struggling to rebuild vehicle inventories severely impacted by production cuts due to the COVID-19 pandemic last year.

        While Honda officials now say they have “secured (chip) inventories” to keep their lines running through the end of this month, Japanese news outlet Nikkei said the third-largest of that country’s automakers actually will cut 4,000 vehicles out of its January schedule, while quoting a “source familiar with the matter” warning that, “The period starting in February may be grim.”

        Japanese home market production has been particularly hard hit due to a major fire that severely damaged a chip plant owned by a subsidiary of Asahi Kasei Corp. last October.

        But other factors have contributed to the problem. Industry planning was thrown out of whack when the pandemic struck last year. In China, the world’s largest automotive market, vehicle sales fell by more than 90% during early lockdowns, demand in Europe plunging by more than half. The U.S. experienced a decline topping 40% at peak in March and April, but it quickly started to rebound, despite forecasts that sales could slide as much as 80% before beginning a slow recovery.

        Worldwide, vehicle sales slipped 17% for the year, according to industry data, but recent months have seen demand surge, even as COVID-19 infections have accelerated. So, if anything, manufacturers have had to accelerate production in a frantic bid to refill inventory pipelines drained by factory shutdowns that, in North America lasted for two months.

        Daimler CEO Ola Kallenius said it was too early to determine how the company will be impacted.

        “The auto market recovery from the COVID crisis was faster than expected” because of economic stimulus measures the world over, as well as people purchasing vehicles to avoid having to take public transportation, Masashi Okada of the consultancy Arthur D. Little Japan, told the Nikkei.

        Meanwhile, demand for chips has accelerated from other sectors, including the consumer electronics industry ramping up offerings of everything from smartphones and video game consoles to Internet-of-Things, or IoT, devices like smart light switches and WiFi-operated coffee pots and refrigerators.

        (Automakers and suppliers plan major presence at “virtual” CES.)

        Volkswagen was one of the first automakers to signal the coming chip shortage, the German company warning last month of the need to adjust production in Europe, China and North America.

        But the list of companies that may need to take similar steps is growing rapidly.

        Daimler AG Chairman Ola Kallenius said it is “too early to tell” what impact the shortages will have on the company, which produces Mercedes-Benz and Smart vehicles. But he acknowledged in public comments that some production adjustments seem likely.

        GM officials acknowledged concerns about how the chip shortage will impact the company.

        General Motors and Renault have also acknowledged concerns about supplies.

        Today’s cars often have more computer processing power onboard than a well-equipped home or office. Digital technology is used for the latest touch- and voice-controlled infotainment systems and advanced driver assistance systems using radar, lasers and cameras to avoid accidents. But even the increasingly popular heated, cooled and powered seats need semiconductor chips to operate, as do today’s powertrain controllers. New electric vehicles are only accelerating demand at a rapid pace.

        In many cases, automakers find themselves stuck on the sidelines dependent upon vendors to address shortages, as companies like Bosch – the world’s largest auto supplier – provide a majority of the smart components used in today’s vehicles.

        The German company told the Financial Times it is receiving “significantly fewer” chips than expected, with other key suppliers such as Valeo and Continental expressing similar concerns.

        (Mercedes Hyperscreen takes in-car video displays to new extreme.)

        If anything, the competition for chips is only expected to accelerate going forward, experts warn. But due to the complexity and cost of setting up new semiconductor plants, supply shortages may not be easily resolved.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published
        ChevyCamaroZL1Welburn01.jpg

        Week Ahead: Chicago … that Toddling Town

        Today

        The Rearview Mirror: Tailfins Take Flight

        Feb. 04, 2023
        2021 Porsche Taycan - charging

        TikTok Reveals the Hottest EVs in the Industry

        Feb. 03, 2023

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: