Semiconductor shortage pushes Ford, Nissan to cut vehicle production

Ford Motor and Nissan Motor confirmed on Friday that they are cutting vehicle production at their factories in the United States and Japan due to a semiconductor shortage, underscoring growing concern for the global auto industry in 2021.

Ford will idle an SUV plant in Kentucky next week, while Nissan will cut production at a plant in Japan. Both companies said they were working closely with suppliers to resolve and monitor the situation for any further impact.

Automakers and parts suppliers began warning of a semiconductor shortage late last year, after demand for vehicles grew faster than expected following a two-hour shutdown. months of production plants due to the coronavirus pandemic.

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

German automaker Volkswagen said last month it had adjusted production at its facilities in China, North America and Europe due to a shortage in semiconductor supply, according to Reuters. America’s largest automaker, General Motors, has not had to cut production, but the company is closely monitoring the situation, according to spokesman David Barnas.

“We recognize the increased demand for semiconductor microchips as the auto industry continues its global recovery,” he said in an emailed statement. “Our supply chain organization works closely with our supply base to find solutions to the semiconductor needs of our suppliers and to mitigate impacts on GM production.”

The affected Ford plant, the Louisville Assembly Plant, builds the Ford Escape and Lincoln Corsair SUVs and employs approximately 3,900 hourly workers. Ford spokeswoman Kelli Felker said it will increase a week-long shutdown previously scheduled for later in the year to next week due to the shortage.

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

The affected Nissan plant, the Oppama plant in Japan, builds the Note, a subcompact car that is not sold in the United States.

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