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Nissan Motor Co. is set to reduce production of its popular Rogue SUV in Japan starting next week due to a shortage of semiconductor chips from Dutch supplier Nexperia, a ripple effect of ongoing diplomatic tensions involving the chipmaker. According to a source familiar with the matter, Nissan will cut output by around 900 units at its Kyushu plant in the week beginning November 10. The automaker is also reassessing its production plans for the following week as the shortage persists.
The Rogue, known as the X-Trail in Japan and the U.K., was Nissan’s best-selling vehicle in the United States last year, with nearly 246,000 units sold. While Nissan also manufactures the model in Tennessee, the production cut in Japan highlights the global impact of supply chain disruptions. The company confirmed it will implement “small-scale production adjustments” at its Kyushu and Oppama plants, the latter producing the Note compact car, and emphasized that the situation remains fluid. Nissan stated it will work swiftly to recover and minimize customer delays once chip supplies stabilize. Further updates are expected during its second-quarter earnings announcement on Thursday.
The chip shortage stems from escalating tensions between China and the Netherlands after the Dutch government seized control of Nexperia, citing security concerns over its Chinese parent company, Wingtech. In response, China imposed export bans on Nexperia products, disrupting global automotive supply chains. Although China later suggested possible exemptions, tensions remain high.
Automakers worldwide, including Honda Motor Co., have been forced to adjust or suspend production as a result. Nexperia chips are essential components used in vehicle systems such as brakes, lighting, and entertainment features. Nissan warned that chip supply risks would remain a major challenge in the months ahead, underscoring the automotive industry’s ongoing vulnerability to geopolitical shocks.
