[News] Nexperia Dispute Widens: Nissan Reportedly Cutting Output Further, Bosch Implements Furloughs

Disruptions at Nexperia continue to reverberate across the global auto industry, straining production lines and adding uncertainty to supply chains. According to Reuters, sources say Japan’s Nissan will cut production by another 1,400 vehicles at its Kyushu plant next week. The move follows a 900-vehicle reduction in output last week. Cuts this time will include the Serena minivan, as well as the Rogue SUV, known locally as the X-Trail, the report adds. The report also indicates that Nissan will again scale back production of its Note compact at the Oppama plant near Tokyo for a second consecutive week, noting that December output plans for both sites remain under review.

Bosch Turns to Furloughs as Supply Issues Hit Production

Nissan is not the only company affected by the Nexperia dispute. According to Reuters, German auto-parts maker Bosch is dealing with disruptions across three factories, affecting thousands of workers. The firm confirmed that production at its Ansbach, Salzgitter, and Braga sites is still being affected.

With the supply shortage hitting production, Bosch has been sending workers home when needed. According to a spokesperson cited by Reuters, the company is using state-backed furlough measures “as needed” for 300–400 of the 1,300 employees at its Salzgitter plant, and has furloughed about 650 of the 2,500 workers at its Ansbach site. In Portugal, around 2,500 of the 3,300 employees at its Braga facility are affected by temporary working-time reductions or furloughs.

Chip Supply Pressures Prompt Alternative Sourcing Efforts

In the meantime, some automakers have been seeking alternative chip sources. As noted by Reuters, Volkswagen head Thomas Schaefer said the company has secured adequate supplies for production and is “secure at present.”

Likewise, other carmakers are working to stabilize their supply. Honda says it will start gradually returning its North American vehicle assembly plants to normal operations. A spokesperson told Reuters the company has secured a certain level of chip supply, partly by sourcing alternative components. Earlier, Honda had halted production at its Mexico plant on October 28 and adjusted output at its U.S. and Canadian factories from October 27 due to the Nexperia-related chip issue.

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(Photo credit: Nexperia)