• Nissan Motor will reduce output of its Rogue SUV and Serena minivan by approximately 1,400 vehicles next week.
  • The production cut stems from a microchip supply disruption from Dutch supplier Nexperia, linked to diplomatic restrictions affecting shipments from China.
  • This marks the latest blow to automakers grappling with persistent semiconductor shortages and geopolitical trade tensions.

Nissan Motor Co. is slashing production of two key models at its Japanese plants next week, according to people familiar with the matter, as a fresh chip supply crunch hits the auto industry. The automaker will cut output of the Rogue SUV and Serena minivan by roughly 1,400 vehicles due to a shortage of semiconductors from Dutch supplier Nexperia.

The disruption originates from diplomatic restrictions that have hampered Nexperia's ability to ship chips from China, where its parent company Wingtech is based. The Dutch government has moved to prevent certain technology transfers, prompting Chinese authorities to call for an end to what they term "interference" in Nexperia's operations.

A Nissan spokesperson confirmed the company is making "minor adjustments" to production schedules at its Kyushu and Oppama plants but declined to specify the exact number of vehicles affected. "We are closely monitoring the situation and will take appropriate actions to minimize the impact," the spokesperson said, though they did not respond to specific questions about the Nexperia supply issue.

The Rogue represents Nissan's best-selling vehicle in the United States, with nearly 246,000 units sold last year. The production cut comes as Nissan dealers are already grappling with profitability at 15-year lows and oversupply issues that prompted the company to reduce U.S. output by 6% in the first quarter.

This isn't an isolated incident. Honda Motor Co. recently suspended operations at its Mexican plant and scaled back production across North America due to similar chip supply constraints. The situation highlights how geopolitical tensions continue to ripple through automotive supply chains that remain vulnerable years after the pandemic-era chip crisis peaked.

Production issues tied to microchip shortages now represent the primary risk to Nissan's outlook for the second half of its fiscal year, according to internal assessments. The company has paused some investment in U.S. electric vehicle production amid broader market concerns and inventory challenges.

Without a resolution to the chip supply disruption, Nissan may be forced to implement further production reductions in the coming weeks, according to supply chain managers familiar with contingency planning. The company aims to restore normal output once supplies stabilize but is actively reviewing alternative sourcing options.

Correction: An earlier version of this article misstated the total production cut figure; it is approximately 1,400 vehicles.