Nissan to idle more U.S. output amid chip woes

The global semiconductor shortage roiling the auto industry will have a significant effect on Nissan Motor Co.'s U.S. production this summer.

The company plans to idle output of three Nissan models — the Murano crossover, Leaf electric hatchback and Maxima large sedan — at its plant in Smyrna, Tenn., for four extra weeks following the plant's two-week summer shutdown, which begins in late June, according to sources at two suppliers familiar with the matter.

Nissan declined to comment on production schedules at its Smyrna, Tenn., plant but said output of the midsize Altima sedan in Canton, Miss., will be suspended for two weeks following the summer shutdown.

The chip shortage is complicating a product overhaul central to Nissan's efforts to revive consumer interest and profitability in the U.S.

The Japanese automaker's U.S. plants are preparing to introduce three key redesigned models: the Nissan Pathfinder and Infiniti QX60 crossovers and the Nissan Frontier midsize pickup.

Nissan is prioritizing new launches and high-volume models such as the Sentra, Rogue and Kicks for the limited supply of microchips. In May, Automotive News reported Infiniti would halt QX50 assembly for June to conserve chips for QX60 production, which begins in summer.

"It's a bit of a Rubik's Cube," said Michael Colleran, Nissan brand's U.S. sales and marketing boss, referring to allocation decisions.

"It's required us to be on our toes on a day-to-day basis and work every day to understand what the supply chain looks like, what our suppliers can provide us," Colleran said last month. "We meet daily and talk about how we allocate the chips to the components, ensuring that we're protecting our launches, that we're living up to the contractual commitments that need to be satisfied," such as rental fleets.