A Ford Escape sports utility vehicle (SUV) goes through a final inspection during production at the Ford Motor Co. assembly center. in Louisville, Kentucky, USA, on Tuesday, April 28, 2015.
Luke Sharrett | Bloomberg | Getty Images
Ford Motor and Nissan Motor confirmed Friday that they are cutting vehicle production at plants in the U.S. and Japan due to a shortage of semiconductors, reflecting growing concern for the global automotive industry in 2021.
Ford will idle an SUV plant in Kentucky next week, while Nissan reduces production at a plant in Japan. Both companies said they are working closely with suppliers to resolve the situation and monitor it for any additional impacts.
Automation equipment and parts suppliers began warning of a semiconductor shortage late last year after demand for vehicles went up faster than expected following a two-month closure of production plants due to a coronary virus outbreak.
Semiconductors are a very important component of new vehicles for everything from infotainment systems to other more traditional components such as power management. They are also easy to use in consumer electronics.
German automaker Volkswagen said last month that it shifted production at facilities in China, North America and Europe due to shortages in the supply of semiconductors, according to Reuters. America’s largest automaker, General Motors, has not been forced to cut production but the company is keeping a close eye on the situation, according to spokesman David Barnas.
“We are aware of the growing demand for semiconductor microchips as the automotive industry continues to regenerate globally,” he said in an emailed statement. work closely with our supply base to find solutions to our suppliers’ semi-automated requirements and to mitigate impacts on GM production. “
The Ford-affected plant, the Louisville Assembly Plant, builds the Ford Escape and Lincoln Corsair SUVs, and employs approximately 3,900 workers per hour. It will move up a previously planned weekly shutdown later in the year to next week due to shortages, according to Ford spokesman Kelli Felker.
“We are working closely with suppliers to address potential production constraints associated with the global semiconductor shortage,” she said in an email statement.
An affected Nissan facility, the Oppama Plant in Japan, will build the Note, a subcompact car not sold in the U.S. Lloryn Love-Carter, Nissan’s U.S. spokesman, said the shortage did not semiconductor affects the company’s domestic output.
“We are working closely with our supply partners to monitor the situation and assess any potential impact on our North American activity,” he said. i in an email message.