Japanese automobile maker Nissan is planning to make half one million fewer automobiles in 2021 as the worldwide chip scarcity continues to wreak havoc on the automotive business.

Nissan Chief Govt Makoto Uchida instructed CNBC’s “Squawk Field Europe” on Thursday that the corporate can be grappling with a surge in uncooked materials costs.

“The impression we foresee as of talking is about 500,000 items by way of the manufacturing this 12 months,” mentioned Uchida, including that the corporate will take steps to attempt to get manufacturing again on observe.

At this time’s vehicles depend on pc chips for all the pieces from the administration of engines to driver help methods.

Rivals together with Ford, Volkswagen and Stellantis have additionally warned that their manufacturing strains may see additional hits on account of the semiconductor disaster.

Britain’s Jaguar Land Rover said last month that it was stopping automobile manufacturing for a “restricted interval” at its Citadel Bromwich and Halewood manufacturing vegetation in England on account of the chip scarcity.

It got here simply two months after the company announced it was going to chop 2,000 non-factory jobs.

Elsewhere, Mercedes-maker Daimler said final month that it was slicing the hours of as much as 18,500 employees and pausing manufacturing at two vegetation in Germany for no less than per week.

Analysts predict that the global chip shortage will final effectively into 2022, and probably even into 2023.