Nissan Shuts Down Mexico Plant for One Week Due to Lack of Semiconductor

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Nissan has already confirmed earlier this month that it’s planning a series of production adjustments at its factories due to the global semiconductor shortage. And now the company provides more details about how it plans to deal with the semiconductor struggle.

In addition to a three-day halt affecting the production lines at its plant in Kyushu. The Japanese carmaker is also temporarily stopping operations at its factories in Mexico.

Video Credit – CNBC

The company’s Aguascalientas Plant 1 will stop assembling cars for one full week in June. According to a report from Reuters. This particular factory is in charge of building Nissan’s Versa, Kicks, and March.

But at the same time, the Japanese firm also plans to halt the operations at Plant 2 as well, though this time the whole thing would only happen for one day. The manufacturing of the Nissan Sentra is expecting to be affect every by the production adjustments.

And last but not least, Nissan confirmed its CIVAC plant in Morelos will go offline for seven days as well.

And it’s all because the Japanese company doesn’t have enough Semiconductor to install on its cars. The global semiconductor shortage has already made plenty of victims in the automotive industry. The large companies turning to similar production adjustments as they wait for suppliers to deliver more chips.

The worse news is that nobody knows for sure when exactly the crisis is suppose to come to an end. Industry experts warn the lack of semiconductor is very likely to continue in 2022. Some signs of recovery to recorded in the first quarters of the next year.

Meanwhile, research shows that the production of over 4 million cars could be affected by the semiconductor shortage. The number expected to grow by the end of the year unless foundries found a way to manufacture more Semiconductors and ship them on time to help avoid more halts.

What caused the chip shortage in 2021?

The world is in the grips of a global chip shortage because of demand for semiconductors surging far beyond capacity for supply. The shortage is crippling players in industries as diverse and far afield as Automotives and smartphones—though carmakers have it the worst.

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