The Dealer Playbook
The Dealer Playbook

Episode · 8 months 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 had your fair share of these conversations, like you're about to roll your eyes when I ask about chip shortages, but I was listening to your recent interview on Fox News and you spoke about or actually they kind of ask you about the impact of the chip shortage and you had spoken to that effect that the impact that it has had on all automakers, I can only imagine that moving all in on electrification means a heavier dependence on chips, microchips, um, computer systems, all of those sorts of things. Have there been any conversations perhaps internally about how to mitigate this type of scenario from happening again in the future? Yeah, absolutely. I mean this isn't the first time that the industry has been hit with uh supply shortages or our supply chain difficulties. That's true...

...for I think although I am including Nissan, a robust global supply chain is always needed and we continue those conversations, you know, we're really reinventing Nissan from the ground up, change the business, change the culture, change the product and we've done a great job on the product side and center in the road and Pathfinder, new Frontier all coming at us uh, and selling well in the market place. In fact, we just launched the only frontier and we've changed business um in many different ways uh, and then changing the culture is all about, changing the people and the attitudes and within, you know, changing the business. Um and changing the culture is the supply chain piece that you've taught you you've asked about and we're certainly looking and examining our supply chain really every day to make sure that that it can deliver what we expect and so that we can deliver a product, the consumer that's that's safe, that's reliable and affordable as...

...well. So I would say it's an ongoing process every day. Uh, certainly this shortage has opened our eyes up to some gaps 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 entire industry. We're starting to see the light and and climb out, but it's it's a long climb out and not just for our industry for some other industries as well. Yeah, and I can only imagine just from an organizational perspective how many plates are spinning at once to navigate a scenario like the, such as this where perhaps where the rubber meets the road at the dealer level or at the retail industry side of things. There's no way for us to actually know all of the things that are crossing your desk that factor into this. But I can only imagine, um there are things that we don't understand. It always interests me because I don't get the...

...opportunity often to to meet with executives such as yourself at the O. E. M. Level, but I can only imagine that there must be instances where it's like, okay guys, but you're not thinking about this. No, we are not here against you. We are not trying to destroy, you know, retail because that's, you know, humans are absolute beings were like have a little toothache and we're like, oh, I got job cancer or something like that. Right? Um, and that certainly tends to be the case from what I observe where the rubber meets the road. They don't anticipate all of the things that 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 the dealer now mike, what are your thoughts on that? You may recall? I think I said it and it was in one of the interviews that did recently. I think it might have been with Stuart Varney and Fox. Uh, I referred to as a Rubik's cube and you know every day, um, the sales...

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

...exact same spot just the right time to build a car so far. We've been pretty successful. They supply um certainly lower 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've been able to keep up mostly, but uh I think the industry will be stronger for all of this in the area. Mhm, mhm mm. Yeah, I'm Michel Cirillo and you've been listening to the dealer playbook podcast if you haven't yet, please click the subscribe button wherever you're listening right now, leave a rating or review and share it with a colleague. Thanks for listening.

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