Semiconductor shortage Q&A – Nissan ME

Thierry Sabbagh - Nissan ME - Semiconductor shortage QnA
Spokesperson: Thierry Sabbagh, President, Nissan Saudi Arabia, INFINITI Middle East and Managing Director, Nissan Middle East, shares his views on the current semiconductor shortage.



  1. What impacts has the ongoing semiconductor shortage had on the availability of vehicles in the local market?

The automotive industry, as agile and resilient as it is, has been experiencing a series of unprecedented challenges over the past few years. As the global semiconductor shortage continues to have a profound effect on automobile manufacturers across the globe, we at Nissan have had to update our plans and forecasts to accommodate the ongoing chip shortages and minimize impact to customers.

We have adjusted production schedules within our manufacturing operations and worked closely with our global teams and local partners to minimize the disruption of vehicle deliveries to our dealers and customers. For Nissan, the key to navigating these challenges has been the ability to adapt to changing conditions, and while we steer our way through a global shortage in vehicle supply, we continue to listen to customer needs and accelerate digital offerings across all touchpoints.

  1. Has the global semiconductor shortage had any impact on vehicle prices in the local market?

Globally, vehicle prices have seen fluctuations recently and that is partly due to the semiconductor shortage but also because of the pressures on supply, the increasing prices of raw materials, and increased logistical challenges. From a global standpoint, we’ve responded to increased prices by hedging and preordering materials where possible. Despite the headwinds, we’ve continued to minimize the impact of price changes on our customers and offer more value to their Nissan ownership experience in collaboration with our local partners through attractive sales offers, extended warranties, and service packages.

We remain committed to providing our customers an accessible and diverse product range, powered with segment-leading technologies for a safer, more connected, and more enjoyable driving experience.

  1. When do you think the semiconductor shortage will no longer be an issue?

Much like the COVID-19 pandemic that redefined our new normal, businesses in various industries will need to adapt and continue to deal with the semiconductor shortage. Guided by our Nissan NEXT global transformation plan, we at Nissan have been resilient during these challenging times and have successfully maintained profitability and business continuity. This has been possible by cutting fixed costs, trimming production capacity, launching new products, and improving revenue per vehicle.