“There have been warning signs about his for months,” said Kristin Dziczek, vice president of industry at the Center for Automotive Research, an industry think tank. When automakers recovered, there weren’t enough chips. Global automakers were forced to close plants to prevent the spread of the virus. Industry officials say semiconductor companies diverted production to consumer electronics during the worst of the COVID-19 slowdown in auto sales last spring. Nissan said it has had to adjust production in Japan but hasn’t seen a significant impact so far in the U.S. The plant makes the Ford Escape and Lincoln Corsair small SUVs.įiat 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.
Ford had scheduled down time next week at its Louisville, Kentucky, assembly plant, but moved it ahead to this week. Toyota was forced to slow production of the full-size Tundra pickup at a factory in San Antonio, Texas. 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. If the chip shortage lasts, production cuts could reduce the inventory of cars, trucks and SUVs for sale in the U.S.