Nissan Motor has slashed production plans for its redesigned Leaf electric vehicle by more than half for the September-November period due to battery supply shortages, Nikkei reported, dealing another blow to the Japanese automaker’s troubled recovery efforts.
The production cuts at Nissan’s Tochigi plant, which manufactures the new Leaf for U.S. and Japanese markets, amount to several thousand vehicles monthly according to company officials cited by Nikkei. Lower-than-expected battery yields at a Nissan affiliate caused the revisions to the fiscal 2025 production schedule.
The setback comes as Nissan grapples with its worst financial crisis in years. The company posted a net loss of ¥670.9 billion ($4.5 billion) in fiscal 2024 and dropped out of the top 10 global automakers by sales for the first time. Under its “Re:Nissan” restructuring plan announced in May, the company is closing seven plants and eliminating 20,000 jobs while targeting ¥500 billion ($3.4 billion) in cost savings.
The new Leaf represents a critical component of Nissan’s electric vehicle strategy. Redesigned as a crossover SUV with up to 303 miles of range, the model was expected to help the company regain ground lost to Tesla and Chinese competitors like BYD in the global EV market.
Despite the production challenges, Nissan maintains it will launch the new Leaf by year-end as planned. The company declined to comment on what it called “speculative reports” but said the model was progressing on schedule toward its planned release.
The battery shortage marks a separate issue from earlier production concerns related to China’s rare earth export restrictions that affected multiple Japanese automakers. Nissan’s struggles highlight the supply chain vulnerabilities facing traditional automakers as they attempt to transition to electric vehicles while managing severe financial pressures.
