Chip scarcity forces Ford, Toyota, Nissan, FCA to chop car manufacturing

Ford Motor Co, Toyota Motor Corp, Fiat Chrysler Cars and Nissan Motor Co Ltd stated on Friday they’d lower car manufacturing this month attributable to a scarcity of semiconductors, turning into the most recent automakers hit by a chip crunch as demand rebounds from the coronavirus disaster.

Honda Motor Co additionally stated Friday its output in Japan might be affected by a scarcity of semiconductors.

Automakers and digital makers are dealing with a worldwide scarcity of chips as shopper demand has been bouncing again from the coronavirus pandemic, inflicting manufacturing delays.

Credit score Suisse analyst Daniel Levy stated in a analysis word that the chip provide points might restrict near-term auto manufacturing for the trade, however trade officers stated they’re prioritizing manufacturing of higher-profit automobiles.

Main auto chip suppliers reminiscent of NXP Semiconductor stated auto manufacturing rebounded quicker than anticipated from the pandemic, leaving them struggling to catch up.

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Meantime, chip manufacturing capability has been stretched skinny globally as laptops fly off cabinets for working from dwelling, and PCs and gaming consoles promote closely, main chip companies reminiscent of Nvidia Corp to warn of provide constraints.

And a transfer by U.S. regulators to blacklist China’s Semiconductor Manufacturing Worldwide Corp, that nation’s largest contract chipmaker, has despatched chip companies around the globe scrambling to search out new companions.

U.S. automaker Ford stated it will idle its Louisville, Kentucky, meeting plant, which builds the Ford Escape and Lincoln Corsair SUVs, pulling forward a scheduled week-off from later within the yr.

Fiat Chrysler stated it can delay the restart of manufacturing at its Toluca, Mexico plant, the place it builds the Jeep Compass, and idle its Brampton, Ontario plant that builds the Chrysler 300, Dodge Charger and Dodge Challenger automobiles.

The Mexican plant had been attributable to restart manufacturing subsequent week, however now each crops shall be shut by the top of the month, FCA stated.

Toyota will lower manufacturing of its Tundra full-size pickup truck at its San Antonio, Texas, plant, however spokesman Scott Vazin didn’t instantly know what number of models could be misplaced. “We’ll throttle again manufacturing,” he stated, including no different U.S. automobiles had been affected.

Ford declined to establish the chip provider and spokeswoman Kelli Felker stated the corporate hopes to have the plant working once more the next week. “We’re working intently with suppliers to deal with potential manufacturing constraints tied to the worldwide semiconductor scarcity,” she stated.

Nissan stated it deliberate to scale back manufacturing of the Notice, a hybrid electrical automotive, at its Oppama Plant in Kanagawa prefecture, Japan however didn’t give particulars of the size of the output lower.

The Nikkei newspaper reported that Nissan would slash its Notice manufacturing at Oppama to about 5,000 models in January, from an initially deliberate 15,000 models.

Germany’s Volkswagen stated final month it confronted a scarcity within the provide of semiconductors and would modify manufacturing at amenities in China, North America and Europe.

Honda has additionally begun “seeing some impression within the elements provide,” an organization spokesman stated. It would first shrink its manufacturing by about 4,000 models this month, primarily affecting the Match subcompact made at a plant within the metropolis of Suzuka in Mie prefecture, the Nikkei newspaper stated Friday.

An enormous fireplace at a chip plant owned by Asahi Kasei Microdevices Corp (AKM), a unit of Asahi Kasei Corp, in southern Japan in October has additionally broken semiconductor provide.

Individually, China’s GAC stated its three way partnership with Honda had acquired warnings on provide of sure fashions however gave no particulars.

China’s Dongfeng Motor, which additionally has a partnership with Honda, didn’t instantly reply to a request for remark.

Basic Motors Co and BMW AG stated on Friday that they haven’t been affected but by the chip scarcity however are monitoring the state of affairs intently.

Reporting by Noriyuki Hirata and Eimi Yamamitsu; further reporting by Yilei Solar, Ju-min Park, Ben Klayman and Paul Lienert in Detroit, and Stephen Nellis.

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