• 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
  • Founder of Spartan Diesel Technologies Faces a Year in Jail for Selling Diesel Defeat Devices
  • What Costs More: New Car or Rent? The $1K a Month Car Payment Hit’s New Highs
  • The Rearview Mirror: The End of the Road for Route 66
  • Here We Go Again: Automakers Report June Sales Decline
  • Recession or Not, U.S. Car Market is in For a Big Boom
  • Hyundai Slashing Passenger Car Line-up — Again
  • Tesla, Maserati and Genesis Owner Loyalty Rising
  • Tesla Market Share Set to Collapse as EV Competition Heats Up, Predicts Leading Analyst
  • Nissan Planning to Drop Titan After 2024
  • New NHTSA Chief Ready to Crack Down on Wayward Self-Driving Technology
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
    • 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: 2022 Jeep Grand Cherokee 4xe Overland
    • A Week With: 2022 Volkswagen Tiguan SE R-Line Black
    • First Drive: 2023 Cadillac Lyriq
    • First Drive: 2022 Ford Bronco Everglades Edition
    • A Week With: 2022 Mazda3 2.5 S AWD Hatchback
    • First Drive: 2023 Honda HR-V
    • First Drive: 2022 Ford Bronco Raptor
    • A Week With: 2022 GMC Terrain AT4 AWD
    • A Week With: 2022 Cadillac Escalade Sport
    • First Drive: 2023 Cadillac Escalade-V
    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 > Chip Shortage Nixes Nissan’s Comeback

        Chip Shortage Nixes Nissan’s Comeback

        Japanese automaker’s profits clipped by forced production cuts.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        May 12, 2021

        Nissan expects to lose production of as many as 500,000 vehicles during the coming fiscal year as the semiconductor shortage delays its return to profitability.

        The Japanese automaker now forecasts it will only break even for the year that began April, undercutting outside estimates it could be profitable this year.

        “If we look at the immediate challenges today, there is a big impact from business risks like semiconductor and commodity price hikes … so at this point in time, we are foreseeing operating profit coming out even,” Chief Executive Makoto Uchida said on an online earnings call, adding that Nissan will update its outlook after the first quarter.

        Nissan COO Ashwani Gupta said the automaker has made up about half of the lost production of 130,000 vehicles.

        Outside factors hampering success

        He added fiscal year 2020 was dominated by the COVID-19 pandemic and impacted by multiple factors including growth of environmental awareness and political as well as economic changes 

        Like other automakers in Asia, Europe and North America, Nissan is facing a shortage of vital semiconductors, which began at the end of 2020. The shortage was exacerbated in recent months by a fire at a plant of key automotive chip maker Renesas Electronics Corp. in Japan as well as blackouts in Texas where a number of chipmakers have factories.

        That forced Nissan to cut production by 130,000 vehicles in the year just ended, although the company has been able to recover half of that production, Chief Operating Officer Ashwani Gupta said.

        The chip shortage and pandemic derailed plans to return to profitability.

        Further plant shutdowns coming

        The ongoing shortage of semiconductors due to the fire at Renesas’s plant, will impact Nissan in the first quarter and will also likely affect Nissan’s production of 500,000 vehicles this year, Nissan executives said.

        The company expects to recover only half of the affected production in the second half of the year, they said. Nissan is now planning to slash production at several factories in Japan in May, according to new reports from Japan. It will also curb production at plants in North America and Mexico.

        Nissan has also struggled to make money as it pulls back from the ambitious expansion pursued by ousted chairman Carlos Ghosn. It has not made a profit since the year ended March 2019 and it reported its annual operating loss in the year ended March 31 widened from the shortfall in the previous year despite sales improvements in China and North America.

        Recently Published
        Spartan Diesel Tech coal roller one

        Founder of Spartan Diesel Technologies Faces a Year in Jail for Selling Diesel Defeat Devices

        Yesterday
        February car sales

        What Costs More: New Car or Rent? The $1K a Month Car Payment Hit’s New Highs

        Yesterday

        The Rearview Mirror: The End of the Road for Route 66

        July 02, 2022

        Leave a Reply Cancel reply

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

        Share this article:
        © The Detroit Bureau 2022
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: