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Car factories began to stand idle for weeks due to a shortage of chips
Automakers have been complaining about the shortage of semiconductor components since the end of last year, many of them have to go not only to reduce the volume of production of cars, but also to suspend the work of individual enterprises. Unions note that in some cases conveyors will be idle for weeks. The problem affected both European and American manufacturers.
Image source: Bloomberg
Bloomberg in a recent report on North American production sites mentions decisions made by GM and Ford Motor to reduce the number of work shifts, introduce additional weekends with partial pay or completely stop production of certain types of vehicles. All this is due to the fact that there are not enough semiconductor components to maintain the rhythmic production of cars in the same volumes, and priority is given to the production of more profitable models.
The Stellantis NV alliance, recently formed by French PSA and Fiat Chrysler, will halt Canadian minivan production for three weeks from next Monday, local union officials told Bloomberg. Illinois plant had to stop production of Jeep Cherokee for one week. Dodge and Jeep factories in Mexico and Canada were idle for most of January.
Alliance’s European factories also hit, Reuters adds. Production of Opel and Citroen cars in Germany and Spain will be forced to be suspended. The Italian company Fiat will be forced from next week to reduce production and send about seven thousand workers on forced leave.
Renault will shutdown one plant in France and two in Morocco for a few days next week. The sister brand Nissan in the US has also been forced to introduce additional weekends at assembly plants. Interestingly, Daimler and BMW have not yet resorted to stopping the conveyors, hoping to get by with the stock of components that they managed to create. It is important to take into account that the production volumes of premium-level models are noticeably less, therefore, they may suffer less from the shortage of chips.