Nissan has projected a third year of net losses with its turnaround efforts hobbled by “huge risks” from the global chip shortage and a surge in raw material costs. Luca de Meo, chief executive of Renault, also said that it would probably take months for semiconductor supply to catch up with soaring demand. The chip shortage was caused by an unexpected post-Covid rebound in demand for cars late last year, which coincided with a booming consumer electronics market. Following steep job cuts and plant closures, Nissan managed to eke out an operating profit in the final three months of 2020. But it quickly fell back into an operating loss of ¥19 billion during the January to March quarter as marketing costs also rose for new product launches.

Source: The Irish Times May 11, 2021 17:08 UTC