Stellantis NV and Chinese electric vehicle manufacturer NIO became the latest carmakers to announce new production cuts as a result of global semiconductor chip shortages.
Stellantis said it would stop production at five North American plants over the next week due to global microchip shortages: two assembly plants in Canada, one in Mexico and two in the United States. Production will be halted from mid-next week to mid-April. The company has affected plants in Toluca, Mexico, where it produces the Jeep Compass; Windsor Assembly in Ontario where it manufactures Chrysler Pacific Minivans; A plant in Illinois that makes Jeep Cherokee SUVs; The Michigan plant that makes the Ram 1500 Classic pickup and another Ontario plant that makes the Chrysler 300, the Dodge Charger and the Dodge Challenger.
Stellantis did not say how long the shutdown would last, but a local consortium in Windsor said the minivan plant would halt production for four weeks starting Monday. Nissan Motor Company said it would stop production for two days from April 1 at its Smyrna vehicle and Canton vehicle assembly plants and Mexico Aguscalientes plant. Normal production will resume on 6 April.
Nio, which dominates the electric vehicle market in China, said it would halt production for five working days at its Hefei plant and cut its first-quarter delivery forecast by 1,000 vehicles.
1.3 million lost production in the global auto industry due to chip shortages, research firm Autoforcast Solutions estimates.
The chip shortage is also a result of the growing demand from the consumer electronics industry as people worked from home and played more video games during the crisis. Sanctions against Chinese technology companies have also played a role.
Nio, which also faces competition from homegrown rivals such as Xpeng Inc., now expects to deliver 19,500 vehicles in the first quarter, with less than 20,000 Ford warned that it could make up to $ 2.5 billion in profits by 2021 , While the big US automaker GM expects to raise the crisis to $ 2 billion from its full-year profits.
Ford, which until now had assembled its highly profitable F-150 without parts, said on Thursday that it would deactivate the production of trucks at a plant in Michigan through Sunday.
Both GM and Honda of Japan said they would continue production suspensions at plants in North America this week.
Meanwhile, Swedish truck manufacturer Volvo AB said the chip shortage on Tuesday would have a “substantial” impact on its second-quarter earnings, and it would implement stop days globally on its sites from April.
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