The Dealer Playbook
The Dealer Playbook

Episode · 1 month ago

Is There An End To The Chip Shortage? w/ Mike Colleran

ABOUT THIS EPISODE

Mike Colleran, corporate vp at Nissan Motor Company explains how Nissan is looking to mitigate the dependency and risk surrounding chip shortages moving into the future.

Listen to the full episode featuring Mike Colleran here

Yeah, yeah, yeah, yeah, I know you've probably hadyour fair share of these conversations, like you're about to roll your eyeswhen I ask about chip shortages, but I was listening to your recent interviewon Fox News and you spoke about or actually they kind of ask you about theimpact of the chip shortage and you had spoken to that effect that the impactthat it has had on all automakers, I can only imagine that moving all in onelectrification means a heavier dependence on chips, microchips, um,computer systems, all of those sorts of things. Have there been anyconversations perhaps internally about how to mitigate this type of scenariofrom happening again in the future? Yeah, absolutely. I mean this isn't thefirst time that the industry has been hit with uh supply shortages or oursupply chain difficulties. That's true...

...for I think although I am includingNissan, a robust global supply chain is always needed and we continue thoseconversations, you know, we're really reinventing Nissan from the ground up,change the business, change the culture, change the product and we've done agreat job on the product side and center in the road and Pathfinder, newFrontier all coming at us uh, and selling well in the market place. Infact, we just launched the only frontier and we've changed business umin many different ways uh, and then changing the culture is all about,changing the people and the attitudes and within, you know, changing thebusiness. Um and changing the culture is the supply chain piece that you'vetaught you you've asked about and we're certainly looking and examining oursupply chain really every day to make sure that that it can deliver what weexpect and so that we can deliver a product, the consumer that's that'ssafe, that's reliable and affordable as...

...well. So I would say it's an ongoingprocess every day. Uh, certainly this shortage has opened our eyes up to somegaps in terms of the robustness and we're working hard to correct those.And so, you know, the chip shortages affecting us, it's affecting the entireindustry. We're starting to see the light and and climb out, but it's it'sa long climb out and not just for our industry for some other industries aswell. Yeah, and I can only imagine just from an organizational perspective howmany plates are spinning at once to navigate a scenario like the, such asthis where perhaps where the rubber meets the road at the dealer level orat the retail industry side of things. There's no way for us to actually knowall of the things that are crossing your desk that factor into this. But Ican only imagine, um there are things that we don't understand. It alwaysinterests me because I don't get the...

...opportunity often to to meet withexecutives such as yourself at the O. E. M. Level, but I can only imagine thatthere must be instances where it's like, okay guys, but you're not thinkingabout this. No, we are not here against you. We are not trying to destroy, youknow, retail because that's, you know, humans are absolute beings were likehave a little toothache and we're like, oh, I got job cancer or something likethat. Right? Um, and that certainly tends to be the case from what Iobserve where the rubber meets the road. They don't anticipate all of the thingsthat you guys are dealing with at your level and it translates down here at,well they just want to get, this is just another ploy to get rid of thedealer now mike, what are your thoughts on that? You may recall? I think I saidit and it was in one of the interviews that did recently. I think it mighthave been with Stuart Varney and Fox. Uh, I referred to as a Rubik's cube andyou know every day, um, the sales...

...operations leaders here and our supplychain leaders are meeting To discuss where the chips go. But it's reallyinteresting because it's not about a chip, just going to a factory and thengetting put in a car and we got a car. The chip goes into a module and getchip gets built, goes into module, goes into a component, goes into assemblyand maybe 12 weeks or you know, 14, 15 weeks later that may end up in avehicle someplace and it's not just that one chip, there's other chipscoming from another direction in another component. they've all got toarrive at the same time to build and if you're absent one or two or three, youcan't build that day and maybe you have to close your plants and you know thatthere's been some plant closures along the way as a result of for everyone inthe industry. So it's a, it's a Rubik's cube. We work every day, we roll up oursleeves internally and then working with our suppliers who have beentremendous in this uh in the shortage to figure out exactly where those chipsneed to go so that we can all bring the...

...exact same spot just the right time tobuild a car so far. We've been pretty successful. They supply um certainlylower than it's been in many, many years and that has some disadvantages,but it also has some advantages as well and uh you know, I would say our we'vebeen able to keep up mostly, but uh I think the industry will be stronger forall of this in the area. Mhm, mhm mm. Yeah, I'm Michel Cirillo and you'vebeen listening to the dealer playbook podcast if you haven't yet, pleaseclick the subscribe button wherever you're listening right now, leave arating or review and share it with a colleague. Thanks for listening.

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