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Chip shortage forces Ford, Toyota, Nissan, FCA to cut vehicle production

TOKYO/DETROIT (Reuters) – Ford Motor Co, Toyota Motor Corp (7203.T), Fiat Chrysler Automobiles and Nissan Motor Co Ltd said on Friday they would cut vehicle production this month due to a shortage of semiconductors, becoming the latest automakers hit by a chip crunch as demand rebounds from the coronavirus crisis.

Honda Motor Co also said Friday its output in Japan could be affected by a shortage of semiconductors.

Automakers and electronic makers are facing a global shortage of chips as consumer demand has been bouncing back from the coronavirus pandemic, causing manufacturing delays.

Credit Suisse analyst Daniel Levy said in a research note that the chip supply issues may limit near-term auto production for the industry, but industry officials said they are prioritizing production of higher-profit vehicles.

Major auto chip suppliers such as NXP Semiconductor said auto production rebounded faster than expected from the pandemic, leaving them struggling to catch up.

Meantime, chip manufacturing capacity has been stretched thin globally as laptops fly off shelves for working from home, and PCs and gaming consoles sell heavily, leading chip firms such as Nvidia Corp to warn of supply constraints. Read More

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