NIO has announced that the semiconductor shortage caused the company to suspend vehicle manufacturing activity at the JAC-NIO manufacturing plant in Hefei, China.
According to the press release, the stop will take five business days, starting from March 29, 2021.
Several days out of an entire month is not the end of the world, but certainly an obvious solution, especially for the manufacturer who worked very hard to build high momentum. The results in the last few months have been outstanding.
The projected quarterly car sales output was cut by about 1,000 units, to 19,500 (three models in total: ES6, EC6 and ES8):
“The overall supply constraint of semiconductors has affected the Company’s production volume in March 2021. The Company expects to deliver approximately 19,500 vehicles in the first quarter of 2021, adjusted from a leaked view. previously distributed 20,000 to 20,500 vehicles. “
NIO is no exception. The semiconductor shortage (aka chip shortage) is widespread throughout the industry and has affected a number of manufacturers.
One of the reasons is the surprisingly high demand for chips from the consumer electronics industry.
according to ReutersFord, GM and GM are also affected by the shortage and even expect up to $ 2.5 billion and up to $ 2 billion lower profits in 2021 due to the restrictions. The list of manufacturers that have blocked chip restrictions includes Honda, Volvo, Stellantis (FCA – PSA) and Nissan.
Toyota is reportedly in a good position, as it has asked its suppliers to maintain stores of chips (and other parts) after several complaints in previous years. We can believe that, after 2021, there will be more manufacturers with repositories than ever before.
It will be very interesting to see if the EV industry can get enough chips to support its rapid growth this year.