SEMICONDUCTOR SHORTAGE FORCES CARMAKERS TO REDUCE OUTPUT

A widening global shortage of semiconductors for auto parts is forcing major auto companies to halt or slow vehicle production just as they were recovering from pandemic-related factory shutdowns, Tom Krisher and Michael Liedtke reported for the Associated Press (AP).

Officials at Volkswagen, Ford, Fiat Chrysler, Toyota and Nissan all say they have been hit by the shortage and been forced to delay production of some models in order to keep other factories running.

“This is absolutely an industry issue,” Toyota spokesman Scott Vazin said in an email Friday. “We are evaluating the supply constraint of semiconductors and developing countermeasures to minimize the impact to production.”

If the chip shortage lasts, production cuts could reduce the inventory of cars, trucks and SUVs for sale in the US and other markets.

That comes at a time when the industry was just starting to replenish inventory lost when factories shut down last spring to stop the spread of novel coronavirus.

Toyota was forced to slow production of the full-size Tundra pickup at a factory in San Antonio, Texas. Ford had scheduled down time next week at its Louisville, Kentucky, assembly plant, but moved it ahead to this week.

The plant makes the Ford Escape and Lincoln Corsair small SUVs. Fiat Chrysler has temporarily car closed factories in Brampton, Ontario, and a small-SUV plant in Toluca, Mexico, while Volkswagen said in December it was facing production slowdowns due to the shortage.

Nissan said it has had to adjust production in Japan but hasn’t seen a significant impact so far in the US.

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