Automakers have been complaining about the lack 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 the conveyors will be idle for weeks. The problem affected both European and American manufacturers.
Image source: Bloomberg
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Agency Bloomberg in a recent summary of North American production sites, mentions decisions made by GM and Ford Motor to reduce 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 semiconductor components are not enough to keep the rhythmic production of cars in the same volumes, and the priority is given to the production of more profitable models.
The Stellantis NV alliance, recently formed by the French PSA group and Fiat Chrysler, will halt Canadian minivan production for three weeks starting next Monday, local union officials told Bloomberg. The Illinois facility had to stop production of the Jeep Cherokee for one week. Plants in Mexico and Canada that made Dodge and Jeep models were idle for most of January.
As adds Reuters, European factories of the alliance were also hit. The 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 shut down one plant in France and two in Morocco for several days next week. The sister brand Nissan in the US has also been forced to introduce additional days off 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.
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