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Toyota and Nissan plan production cut from Renesas fire

Expected monthslong chip crunch sends Japanese automakers and more scrambling

A worker inspects cars at Honda Motor's plant in Yorii, Saitama Prefecture. The Renesas fire is only expected to squeeze the global chip supply further, in a blow to automakers.   © Reuters

TOKYO -- With chipmaker Renesas Electronics not expected to achieve a full recovery from its recent factory fire until mid-July, Japan's largest automakers have begun bracing for long-term disruptions and potential production cuts.

The fire follows other incidents that have sapped global supplies of automotive chips. Nomura Securities estimates disruptions from the Japanese chipmaker alone could dent global auto production by 1.6 million vehicles in the April-June quarter, or 7% of planned output.

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