Chinese electric vehicle maker (NIO) - Get NIO Inc. American depositary shares each representing one Class A 蔚来汽车 Report and U.S. automaker Ford (F) - Get Ford Motor Company Report are the latest automotive companies to idle production at some of their plants due to an ongoing shortage in semiconductor chips that has impacted global car and truck production.
NIO announced Friday it would halt production for five working days at its plant in Hefei, China. It also cut its first-quarter delivery forecast to around 19,500 vehicles, compared to the 20,000 to 20,500 vehicles it had previously expected.
That followed in Ford's footsteps, with the automaker announcing Thursday it will idle production of its popular F-150 pickup truck at a plant in Michigan through Sunday due to the chip shortage. The carmaker had cautioned about the chip shortage affecting production following a bond sale earlier this month.
NIO and Ford are among several automakers that have been forced to halt manufacturing in recent months due to a lack of chips that are crucial for modern-day cars to run.
Honda (HMC) - Get Honda Motor Company Ltd. Report and General Motors (GM) - Get General Motors Company Report both announced this week they would continue production suspension at plants in North America for the coming weeks, citing the chip shortage as one of several reasons.
Swedish truck maker Volvo said this week the chip shortage would have a "substantial" impact on its second-quarter earnings, and announced it would implement stop days across its truck manufacturing sites globally beginning in April.
Tesla (TSLA) - Get Tesla Inc. Report also has been impacted by the chip shortage, which forced it to idle production of its Model 3 sedan last month.
A confluence of factors including factory shutdowns, booming demand for laptops and tablets, and sanctions against Chinese tech companies have caused a global shortage of chips that has rattled the electronics sector since December.
Originally concentrated in the auto industry, the shortage has widened to affect a range of consumer electronics, including smartphones.
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