The shortage of semiconductors causes Ford and Nissan to reduce vehicle production

A Ford Escape sport utility vehicle (SUV) undergoes final inspection during production at the Ford Motor Co. assembly plant. in Louisville, Kentucky, USA, on Tuesday, April 28, 2015.

Luke Sharrett | Bloomberg | Getty Images

Ford Motor and Nissan Motor confirmed on Friday that they will reduce vehicle production at plants in the United States and Japan due to the shortage of semiconductors, which highlighted a growing concern for the global auto industry. in 2021.

Ford will shut down an SUV plant in Kentucky next week, while Nissan is reducing production from a plant in Japan. Both companies said they work closely with suppliers to resolve and monitor the situation in case there are additional impacts.

Automakers and parts suppliers began warning of a shortage of semiconductors late last year after vehicle demand rose faster than expected after a two-month shutdown of plants of production due to the coronavirus pandemic.

Semiconductors are extremely important components of new vehicles, from entertainment systems to other more traditional parts, such as power steering. They are also easily used in consumer electronics.

According to Reuters, German manufacturer Volkswagen said last month that it adjusted production to facilities in China, North America and Europe due to the shortage of semiconductor supply. General Motors, the largest U.S. automaker, has not had to cut production, but the company is closely monitoring the situation, according to spokesman David Barnas.

“We are aware of the increasing demand for semiconductor microchips as the automotive industry continues its global recovery,” it said in an emailed statement. “Our supply chain organization works closely with our supply base to find solutions to the semiconductor requirements of our suppliers and to mitigate impacts on GM production.”

Ford’s affected plant, the Louisville Assembly Plant, builds the Ford Escape and Lincoln Corsair SUVs and employs about 3,900 workers per hour. According to Ford spokeswoman Kelli Felker, it will increase a planned closure for the week until next week due to the shortage.

“We are working closely with suppliers to address potential production constraints related to global semiconductor shortages,” he said in an emailed statement.

Nissan’s affected plant, the Oppama plant in Japan, is building the Note, a subcompact car that is not sold in the US Lloryn Love-Carter, a Nissan spokeswoman in the United States, said the company’s domestic production has not been seen affected by the shortage of semiconductors.

“We are working closely with our partner suppliers to monitor the situation and assess any potential impact on our operations in North America,” he said in an emailed statement.

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