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Nissan will produce 500,000 cars in 2021 due to lack of chips

The Nissan Versa Note was featured at the 2013 North American International Auto Show in Detroit, Michigan.

Stan Honda | AFP | Getty Images

Japanese car maker Nissan As the global chip shortage continues to disrupt the automotive industry, we plan to reduce 500,000 vehicles in 2021.

Nissan CEO Makoto Uchida told CNBC’s Squawk Box Europe Thursday that the company is also working to raise raw material prices.

“For now, we expect production to be around 500,000 units this year,” Uchida added, adding that he plans to take steps to get production back on track.

Today’s automobiles rely on computer chips for everything from engine management to driver assistance systems.

Rivals including Ford, Volkswagen And Stellantis It also warns that production lines could be hit further as a result of the semiconductor crisis.

Jaguar Land Rover in the UK Said last month As a result of a shortage of chips, the Castle Bromwich and Hailwood manufacturing plants in the United Kingdom had stopped producing cars for a “limited time”.

It came just two months later Announced by the company We planned to reduce the employment of 2,000 people outside the factory.

Elsewhere Mercedes maker Daimler Said Last month, it saved up to 18,500 workers and suspended production at two German plants for at least a week.

Analyst Predict global chip shortage It will continue until 2022, and probably until 2023. Nissan will produce 500,000 cars in 2021 due to lack of chips

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