According to the Nikkei Asia report citing Nomura Securities' estimates, the Renesas fire may reduce global auto production by 1.6 million units in the second quarter of this year, accounting for 7% of planned production.
Renesas is one of Toyota's main suppliers. "We probably have enough chips to support production in June, but we are not sure after July." Toyota Motor Corporation executives said, "We expect that Renesas' chip production capacity will take some time to return to normal. Therefore, we have no choice but to reduce production"
The report pointed out that under normal circumstances, automakers’ chip inventories can support two to three months of auto production. But Honda executives said: "Some of our models may begin to be affected at the end of April."
In addition, Nissan is also considering production cuts. Analysts believe that the shortage of Renesas chip production capacity is longer than expected. It is very difficult to fully resume production within three to four months. Automobile companies should consider that this situation may last for six months.
The report also pointed out that it is not only Japanese automakers that are affected. Renesas Electronics is one of the major suppliers of auto parts manufacturer Continental. Continental’s production cuts will affect car manufacturing throughout Europe and the United States.