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Chip shortage hits the automotive sector: several companies are shutting down production | NOW

More and more car manufacturers are forced to reduce their production due to a shortage of chips. Stellantis, the new Fiat-Chrysler and Peugeot fusion company, is shutting down five plants in North America. Chinese electric car maker Nio announced that it would discontinue production at a factory in Hefei for five working days.

Earlier this week, Volvo announced that the worldwide shortage of semiconductors will hit the production of trucks from the Swedish company. The company plans to shut down part of its production chain for a day each in the second quarter, which could amount to a total of two to four weeks. Nissan was also forced to close factories in the United States and Mexico for a few days. General Motors extended a previously announced production stop.

Modern cars contain numerous chips that support functions ranging from brake sensors and parking cameras to smart navigation and audio panels. The corona pandemic puts extra pressure on the chip sector. Now that many people are forced to sit at home, the demand for electronics such as PCs, smartphones, televisions and game consoles has increased very rapidly. In addition, the transition to home working requires faster internet connections and extra servers, and this also requires advanced chips. Recently, a fire at a factory owned by Japanese chipmaker Renesas, which supplies a lot to the automotive industry, exacerbated shortages.

Car manufacturers already warned in their quarterly figures of the financial consequences of the production delays. Consultancy firm AlixPartners calculated at the end of January that the lack of semiconductors could cost car manufacturers 61 billion euros in turnover this year. The recent setbacks only threaten to exacerbate financial worries.



Source site www.nu.nl

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