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Semiconductors continue to hit Russian, US car production

Posted on 03 September 2021

Automotive companies continue to struggle with production problems due to the shortage of semiconductors, which has been going on for almost a year.

Volkswagen Group Rus, a subsidiary of Volkswagen AG in Russia, plans to introduce short-term downtime at the plant in Kaluga this month, the company confirms to Kallanish. It says a significant shortage of production capacity for semiconductors has led to serious problems with deliveries to automakers and, in particular, affects the Russian Volkswagen plant.

"Due to the current situation, the company's production volume in September will be reduced,” a company spokesperson says. “According to preliminary data, production in Kaluga will be suspended from 2 to 3 September, 9-10 September, 16-17 September, and 20-24 September.”

The manufacturer continues to monitor the situation and intends to adjust production schedule depending on developments. "As soon as there are improvements in the semiconductor supply situation, we will increase production to meet the stable demand for our products," the company adds.

Another Russian carmaker, AVTOVAZ, resumed production on Thursday of LADA Granta and Niva cars. However, the B0 line, which produces LADA –•RAY and Largus, as well as Renault Logan and Sandero models, remains idle due to electronic component shortages from supplier Bosch. The LADA Izhevsk plant, which uses other components for LADA Vesta, maintains a normal operating mode.

Earlier, AVTOVAZ president Nicolas Maure said the semiconductors supply crisis may last until the second quarter of 2022.

In the US, Japanese carmaker Nissan has postponed the restart of its Tennessee car plant for another two weeks, due to chip shortages, until 12 September.

Ford and Stellantis recently announced additional production cuts. Ford cut production of its best-selling full-size F-150 pickup truck at its plant in Kansas City, Missouri, and cut production to one crew at its car plant in Dearborn, Michigan.

In August, semiconductor shortages forced Audi, Nissan and Volvo to halt some production sites (see Kallanish passim).

Almost 9 million fewer vehicles will be produced in 2021 due to the global chip problem, according to a study by the Boston Consulting Group (BCG).

Source : Kallanish