Nissan ‘cannot be optimistic’ about the ongoing global chip shortage, CEO says

Makoto Uchida, chief executive officer of Nissan

© APA | Makoto Uchida, chief executive officer of Nissan

# 28 July 2021 17:41 (UTC +04:00)

Makoto Uchida, the CEO of Nissan, said Wednesday that the global chip shortage needs to be closely monitored as supply issues are yet to be fully resolved, APA reports citing CNBC.

The Japanese car manufacturer announced in May that it expected to make half a million fewer vehicles in 2021 as a result of the chip shortage. It added that it hoped to mitigate the impact in the second half of the year.

“Knowing the current situation … we cannot be optimistic,” Uchida told CNBC’s “Street Signs Europe” on Wednesday. “I think this is day-by-day still.”

The chip shortage came about after a surge in demand coincided with the coronavirus pandemic. There’s also a shortage of factories making the older, less advanced chips that are used in cars.

Uchida believes the chip shortage situation will improve but he warned there are “many complexities” surrounding semiconductor suppliers as a result of the coronavirus pandemic.

“We need to carefully monitor that,” he said. “We need to anticipate because nobody knows what will happen in the coming months.”

Nissan swung to profit in its latest quarter and upgraded its guidance for the year on Wednesday.

While the chip crunch is likely to continue, Uchida said Nissan is positive about dealing with the issue.