Semiconductors force Nissan, Volvo to halt some production

Japan’s carmaker Nissan site in the US state Tennessee and Swedish carmaker Volvo Cars in Gothenburg are temporarily halting production due to the global semiconductor shortages, Kallanish notes.

Downtime will depend on the supply situation, the companies said. Volvo plans to return to work in a week, and the Nissan plant will most likely be idle from Monday for two weeks, until 30 August.

Nissan said that it has ran short of chips due to a COVID-19 outbreak at a chip factory in Malaysia.

Production lines at Torslanda in Gothenburg will be paused from this evening due to a material shortage linked with the semiconductor issue, a spokesperson said in an emailed statement on Wednesday.

“Production will restart as soon as possible, at the latest before next week,” he adds.

As many of its peers, Volvo Cars has been adjusting production in most of its manufacturing sites to adapt output to the limited supply of semiconductors. The ongoing crisis negatively affected the company’s sales in July, and is also impacting feature availability for the cars it sells.

Volvo Cars is warning customers that, due to the shortage, some features may not be available and local retailers should be contacted to find out which car models are affected.

“The demand for semiconductors is at record levels due to a boost in demand for computer gear and other electronics in combination with trade barriers and high demand for new cars with many electronic features,” the carmaker states on its website.

The carmaker didn’t comment on the potential impact on volumes but told Kallanish “the aim is to make up for any lost volumes at a later stage.”

Earlier this month, major Japan-based semiconductor manufacturer Renesas said it expects semiconductor shortages for the automotive industry will continue until the middle of next year (see Kallanish passim).

Global automotive production could rebound 7-9% on-year in 2021 but will be hampered by supply chain frictions, mainly the lack of semiconductors for OEMs, ING Bank said.

The global semiconductor shortage has even affected next year’s production already, with 5 million vehicles estimated not produced in 2021 and 3m units in 2022.

Bosch recently opened a €1 billion ($1.21 billion) semiconductor manufacturing facility in Dresden, Germany. This is expected to significantly ease automotive chip supply shortages, but only from September.

Svetoslav Abrossimov Bulgaria