Tennessee Nissan plant to shut for two weeks on account of chip scarcity
An enormous Nissan manufacturing facility in Smyrna, Tennessee, that employs 6,700 staff will shut for 2 weeks beginning Monday on account of pc chip shortages introduced on by a coronavirus outbreak in Malaysia, the automaker stated Tuesday.
The shutdown is among the many longest at any U.S. auto plant of this dimension because the semiconductor scarcity, which has hobbled auto manufacturing worldwide, began to hit late final yr.
Nissan stated Tuesday that it ran wanting chips on account of a COVID-19 outbreak at a chip manufacturing facility in Malaysia. It expects manufacturing to renew Aug. 30.
The 6 million-square-foot Tennessee manufacturing facility with 6,700 staff produces six Nissan fashions, together with the Rogue small SUV, the corporate’s top-selling U.S. car.
Analysts say the closure of such a big Nissan manufacturing facility for 2 weeks is an indication that the semiconductor scarcity might not be coming to an finish late this yr as many vehicle executives had hoped.
Few U.S. factories have been down for 2 weeks in a row, they usually normally are crops that make lower-volume, less-profitable automobiles, reminiscent of sedans. Automakers have tried to preserve chips for crops that make their prime sellers, largely SUVs and pickup vehicles. Though pickup truck crops have been shut down sporadically as properly.
Guidehouse Analysis Principal Analyst Sam Abuelsamid stated Smyrna is a vital manufacturing facility for Nissan and its shutdown is an indication that the top of the semiconductor scarcity might not be in sight.
“It is wanting like it is going to stretch a minimum of into the brand new yr,” he stated.
With persevering with COVID-19 outbreaks throughout the semiconductor provide chain in Asia and different areas, provide issues could final even longer than that, Abuelsamid stated.
The scarcity and plant closures, coupled with robust shopper demand within the U.S., have precipitated shortages of recent automobiles throughout the nation. That has pushed up costs, and the scarcity has spilled into the marketplace for used automobiles.
