Ford and Nissan to cut vehicle production due to chip shortage

Chip shortages aren’t just hurting your access to CPUs and GPUs, they’re also hurting the auto market. CNBC, ABC News and The edge report that Ford and Nissan are cutting production in response to semiconductor shortages. Ford is idling an SUV plant in Louisville, Ky., this week, increasing previously planned downtime later in 2021. Nissan, meanwhile, is reducing production at its Oppama plant in Japan.

Other brands may also experience issues. Volkswagen said in December it was modifying production in China, Europe and North America in light of the shortage. Fiat Chrysler and Toyota also cited production issues. GM didn’t have to cut production, spokesman David Barnas said CNBCbut he keeps an eye out for chip-related issues.

The shortage emerged at the end of 2020 after demand for cars surged following pandemic-related factory shutdowns for two months.

These problems could be difficult to avoid at a time when production and demand for cars are unstable. Modern cars rely heavily on microchips to driving assistance functions, infotainment systems and the basics like steering. Until chip availability and car demand are under control, delays and limited inventory could be relatively common.

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