Carmakers To Cut Down Production Due To Semiconductor Shortage
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Carmakers To Cut Down Production Due To Semiconductor Shortage

A global semiconductor shortage has led carmakers to cut or halt production in various manufacturing plants around the world.

Various automakers ranging from Toyota, Ford, Nissan, Fiat Chrysler Automobiles (FCA), Honda, just to name a few, are set to cut vehicle production this January due to a global semiconductor shortage.

The global shortage of semiconductors is caused by rebounding consumer demand for electronics, causing manufacturer delays, according to Reuters. Daniel Levy, an analyst from Credit Suisse says that shortages in semiconductors may limit near-term vehicle production.

Work-from-home arrangements have meant that laptops and PCs around the world are flying off shelves. Gaming consoles like the recently-launched Playstation 5 are also high in demand, which is why Nvidia has given a warning on supply constraints.

US regulators have also decided to blacklist Semiconductor Manufacturing International Corp, China’s largest contract semiconductor manufacturer, further straining global supply.┬áTo make matters worse, a recent fire at a semiconductor plant owned by Asahi Kasei Microdevices Corp (AKM) further crippled semiconductor supply.

In Japan, Nissan will reduce its production output of the recently-launched all-new Note at its Oppama plant in Kanagawa Prefecture. Honda, meanwhile, will reduce the production output at its Suzuka plant in Mie Prefecture by 4,000 units. The production cut will mainly affect the production output of the all-new Jazz (called the Fit in Japan).

General Motors and BMW have not yet been affected by the semiconductor shortage, though Chinese automaker GAC along with its joint venture partner Honda has received warnings on the supply of certain models.

Volkswagen, Toyota, FCA, and Ford are also affected by the global shortage of semiconductors.

Volkswagen will be adjusting production at its facilities in China, North America and Europe, while Toyota will cut production of the Tundra full-size pick-up.

FCA’s Toluca, Mexico plant and Brampton, Ontario plant are also affected. Affected vehicles include the Jeep Compass, Chrysler 300, Dodge Charger, and Dodge Challenger.

Ford’s Louisville, Kentucky plant, where the Ford Escape and Lincoln Corsair are built, will be idled for a week.

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