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    Software complexity starting to cost CEOs their job
    Complexity in the software has increased to a level where it has become not just difficult to debug and maintain, but it has compounded an OEM’s already difficult situation to comprehend the overall system interactions between various electronic control units (ECUs) and to properly test all the various combinations of features in a car. Most of the software in vehicles is written by suppliers that also use third-party software and work with externals, so the OEM’s control on the result is ve...
    Demand scenario for high-performance cockpit domain controllers
    The rising trend of multiple high-resolution displays in vehicle interiors is creating a strong demand for a high-performance System-on-Chip (SoC) from OEMs over the next five to six years. This article offers insights from IHS Markit analysts into the key factors that will drive demand for such high-performance chips. In modern vehicles, with consolidated electrical and electronic (E/E) architecture, a single SoC could be required to process a large amount of data, including video feed from mul...
    Ford Motor upgrades Cologne plant to produce electric cars in Europe
    Ford Motor Company’s Cologne-based manufacturing plant in Germany is being prepared to produce electric cars in Europe at a time when the assembly lines at the unit are idle on account of factory vacation, the automaker said on 15 July 2022.   The company said that the vehicle assembly lines at the Cologne plant are slated to remain idle until 1 August 2022 on account of factory vacation. However, vacation is being utilized by the company in retooling and expanding capacity to produce ...
    Nokian Tyres to record USD313-million asset impairment as part of Russian exit
    Finnish tire manufacturer Nokian announced via a press release on 28 June that its board of directors had decided to initiate a controlled exit from the Russian market in response to tightening sanctions affecting its operations in the area. According to the press release, the exit preparations will start immediately and will involve the company recording impairments of approximately USD313 million (EUR300 million) in relation to its assets in the region in the second quarter of financial yea...
    General Motors shuts down Factory Zero for four weeks to expand capacity
    General Motors will shut down its Factory Zero in Detroit for four weeks, starting 27 June, as it plans to expand the capacity to produce more battery-electric vehicles (BEVs), a report published by news publication The Detroit Bureau on 23 June 2022 said. GM’s Factory Zero currently produces the electric Hummer pickup truck. “GM will expand production capacity at Factory Zero sooner than originally planned by pulling forward the installation of tooling, machinery, and equipment. These up...
    Stellantis suspends production in France due to components shortages
    According to a report published by Reuters on 24 June 2022, two of the Stellantis plants have halted production in France due to shortages in components from German supplier Continental. The report cites, one of the sources claimed that Continental was unable to supply its networked entertainment and navigation systems to a Citroen facility in Rennes. The other said Continental had failed to produce touch displays, which caused a Peugeot facility in Sochaux to be shut down. The news was or...
    Hyundai Motor faces supply chain interruption due to cargo truckers' strike in Korea
    Hyundai Motor Co. has said that the ongoing truckers' strike is affecting production at its main domestic plants, which are already suffering from a global chip shortage, according to a report published by Yonhap on 9 June 2022. About 6,500 of the 22,000 members of the Cargo Truckers Solidarity went on strike, asking that the government prolong a freight rate system that would ensure their basic wages amid growing diesel costs. From 2 pm. Wednesday, striking cargo truckers refused to tra...
    Stellantis to suspend production at Italy’s Melfi plant over semiconductor shortage
    Carmaker Stellantis plans to suspend operations at its key Melfi plant in southern Italy from 6 to 11 June due to shortages of various parts, including semiconductors shortage, according to a report published by Reuters on 1 June 2022. According to the union leader, the production halt impacts 7,000 plant workers and adds to an already scheduled holiday period in Italy. He said that chip shortage was the main problem. "Fortunately the plant has worked regularly all throughout May, but when ch...
    Subaru announces temporary suspension of production due to parts shortage in Japan
    Japanese vehicle manufacturer Subaru Corporation announces temporary suspension of production at its automobile manufacturing facilities in Japan due to interruptions in the supply of certain parts, according to an official press release by Subaru on 1 June 2022. The company said that the operations at the following Gunma Manufacturing Plant will be temporarily suspended for two days from 2 June to 3 June. Automobile plants: Main Plant and Yajima Plant Engine and transmission plant: O...
    Neo reopens JAMR rare earth feedstock separation plant
    Canadian chemical company Neo Materials announced via press release on 18 May that its high-purity heavy rare earth separations facility in Jiangyin (JAMR), China has reopened for full operations. The site had been shut down until 18 May for 12 days due to a government-mandated city-wide lockdown order. According to the press release, the JAMR plant manufactures rare earth products like dysprosium and terbium at the JAMR site that are used to make sintered neodymium-iron-boron (N...
    Ford to suspend production at Flat Rock plant amid chip shortage
    Ford Motor Co. has announced that the automaker will suspend production at its Flat Rock plant in Michigan, US, where it assembles the Mustang citing shortage of semiconductor chips, Reuters reported on 28 April. The automaker has delayed shipping of 53,000 vehicles as it awaits final parts held up due to chip shortage, report added.   Significance: A global chip crisis has impacted companies ranging from consumer electronics to automobile manufacturers, prompting several automakers t...
    Honda plans to reduce output at Japanese assembly plants due to chip shortages
    Japanese automaker Honda Motor Company has said that it is planning to reduce the total production output due to semiconductor chip shortages and COVID-19 related curbs in Japan, according to a report published by Automotive News on 21 April 2022. The company intends to cut down production by about 50 per cent on two lines at one of its Japan factories in early May. The company’s Suzuka factory will also reduce output by half in April, increasing the size of the reduction from an earlier an...
    COVID-19: Bosch halts production at two plants in China
    German auto parts supplier Bosch has suspended production at two of its manufacturing facilities complying with locally enforced COVID-19 restrictions, Reuters reported on 12 April. The affected plants include Thermotechnology factory in Shanghai and an automotive components site in Changchun in northeastern Jilin province. Bosch said in a statement, "We are currently seeing temporary effects on logistics and supply chain sourcing. In this situation, we are doing everything we can to maint...
    Nissan delays Ariya electric SUV sales due to supply chain issues
    Japanese automaker Nissan Motors has again delayed the release of the Ariya B6 sport utility vehicle (SUV) due to a global shortage of semiconductors and COVID-19 related supply chain disruptions, according to a report published by Reuters on 5 April 2022. Nissan Ariya, the company's second all-electric vehicle following the Leaf hatchback, will go on sale in Japan on 12 May 2022. The management had previously stated that the launch will take place in late March. The Ariya was supposed to ...
    Stellantis plans to suspend operation in Russian van plant due to parts shortage
    Automaker Stellantis has announced that its van plant in Russia will have to close soon due to a shortage of parts, according to a report published by Reuters on 31 March 2022. As previously reported, the carmaker has suspended all exports and imports to Russia, where it operates a van plant in partnership with Mitsubishi in Kaluga. As a result of the Russia-Ukraine conflict, Kaluga's production remains for the local market for the time being. Stellantis unveiled its first business strateg...
    COVID-19: Thyssenkrupp closes facility in Shanghai until 6 April to comply with local regulations
    German conglomerate Thyssenkrupp AG, which is also a supplier of automotive parts such as steering systems, dampers, camshafts, chassis, and body-in-white (BIW), has closed its facility in Shanghai until 6 April 2022 to comply with locally enforced COVID-19-related restrictions, according to a Reuters report filed on 29 March 2022. The company assembles production lines for automotive components, including powertrains and batteries, at its Shanghai plant. Notably, the authorities in main...
    Ford to halt production at Michigan plant in US due to semiconductor shortage
    Ford Motor Company will suspend their production at the Michigan plant due to parts and semiconductor shortages, according to a report published by Reuters on 31 March 2021. The company is going to halt production in the coming week at its Flat Rock Assembly Plant, which produces the Mustang, owing to a global semiconductor shortage. Based in Dearborn, Michigan, Ford Motor Company stated that manufacturing at its other North American factories will continue as usual. Significance: The a...
    Chrysler halts production at Windsor plant amid parts shortage
    Chrysler has halted Pacifica minivan production in the company’s Windsor, Ontario citing components shortage, The Detroit News reported on 28 March. Chrysler has confirmed production halt is not in relation to the semiconductor shortage. The production halt comes as a shortage in automotive components and continues to cripple vehicle production. The unit, which manufactures Pacifica and Voyager models, has been closely working with suppliers to plug the production gap. Significance:...
    Tesla to suspend operations at Shanghai factory amid COVID-19 restrictions
    Premium electric vehicle (EV) maker Tesla is planning to halt operation at its Shanghai factory for at least one day amid COVID-19 restrictions, according to a news report published by Bloomberg on 27 March 2022. China would impose lockdown in two stages to conduct COVID-19 testing. The report cites that Tesla's plant production will be suspended on Monday and the company has not yet informed employees whether the suspension will last beyond Monday. Significance: At a time when automakers ...
    Mazda to suspend operations at two plants in Japan due to parts shortage
    Japan-based automaker Mazda Motor would suspend operations at two domestic plants in Japan due to auto parts shortage, according to a report published by Reuters on 24 March 2022. The company plans to suspend production at its factories in Hiroshima and Yamaguchi prefectures on 4 and 5 April. A spike in COVID-19 cases in China was one of the variables likely to cause supply interruptions, according to the report. Significance: The COVID-19-related supply chain disruption has had a signific...
    Russia-Ukraine conflict: Leoni resumes wiring harness production in Ukraine
    Germany-based auto parts supplier Leoni has resumed its wire harnesses production at 40% capacity in Ukraine, according to a report published by NASDAQ on 23 March. The company said that the night shift will allow it to increase its production capacity to 70%, although workers are still subject to a nightly curfew and rocket assaults. The company is still able to make cross-border trade since it can source its components and raw materials and export them. Leoni has 7,000 employees in Ukraine ...
    Toyota halts production in Japan as earthquake disrupts parts procurement
    Toyota will shut down a total of 18 manufacturing plants due to inability to secure parts from suppliers impacted by the earthquake in Japan, reported HT Auto on 18 March. According to the statement, the Japanese automaker will incur a loss of around 20,000 units due to shortage of components. The halting of production lines by several OEMs and manufacturers was due to the earthquake that hit the coast of Fukushima Prefecture. Significance: A 7.4-magnitude earthquake hit Japan’s northeast r...
    Renesas updates on operational impact in Japan due to earthquake on 16 March
    Renesas, on 18 March, announced an update on the impact of the earthquake that hit the coast of Fukushima Prefecture on 16 March. The company operates three factories near the epicenter: Naka Factory (Hitachinaka, Ibaraki Prefecture), Takasaki Factory (Takasaki, Gunma Prefecture), and Yonezawa Factory (Yonezawa, Yamagata Prefecture). At the Naka factory, Renesas restarted manufacturing equipment on 17 March with production resuming partially on the same day. The company expects to reach ...
    Avtovaz partially halts production at Russian plants due to shortage of electronics parts
    Russian automaker, Avtovaz has partially halted production at its plants in Togliatti and Izhevsk on 21–25 March owing to a shortage of electronics parts, according to a report published by Reuters on 21 March 2021. Avtovaz further said that all assembly lines would be idled during 23–25 March, but certain manufacturing functions will continue to operate during this time. Citing a Citibank study, the report mentioned that Renault makes 8% of its core earnings in Russia. The French ca...
    Manufacturers resume operations at earthquake-affected plants in Japan
    Several Japanese manufacturers have reopened their affected facilities following Wednesday's earthquake in the country's northeast, according to a report published by Reuters on 18 March 2022. Earlier, manufacturers were forced to halt some of the production facilities after the 7.4-magnitude earthquake jolted the country's northeast on 17 March. Murata Manufacturing will start production on 18 March in two of its affected factories. However, the other two would still remain idled as a&n...
    Renesas, Murata suspend operations in Japan after earthquake
    Japan-based chipmaker Renesas Electronics and component maker Murata Manufacturing halted some of its production after a 7.4-magnitude earthquake jolted the country's northeast, according to a report published by Reuters on 17 March. Renesas has stopped production temporarily at two semiconductor plants and partially stopped output at a third production after an earthquake caused a tsunami in the country's northeast, causing blackouts and disrupting transportation. Murata stated it had shut d...
    Russia-Ukraine conflict: Fujikura Automotive suspends operations at Lviv Plant
    Japanese supplier Fujikura Automotive halts operations at Lviv Plant in Lviv city following the ongoing Russia-Ukraine crisis, the company announced in a press release on 1 March. The halt in production is in line with many other manufacturers and suppliers who have taken a similar approach to ensure employee safety and on the back of shortages of components from supply chain constraints. Significance: Ukraine is home to major suppliers including Fujikura, Leoni, Kostal, Aptiv, and Nexan...
    Russia-Ukraine conflict: Michelin pauses production at European sites
    French tire manufacturer Michelin announced via press release on 3 February that it would be halting production at some of its European plants in response to supply-chain problems caused by geopolitical tensions in the Russia-Ukraine region. The company stated that it was facing logistical and transportation issues in supplying its plants and delivering products to its customers because of the crisis. To optimize its operations and adapt its flow management to the current situation, the compa...
    Toyota to restart production after cyberattack on supplier Kojima Industries
    Toyota announced that it will restart domestic production, a day after all its manufacturing facilities throughout Japan was halted following a cyberattack at a supplier, according to Reuters on 1 March.    Significance: The Japanese automaker resumes production at its 14 factories nationwide and the suspension disrupted output of around 13,000 vehicles, Reuters said. The statement also said that Kojima Industries discovered an error on its file servers demanding the plastics and el...
    Canada truck protest’s forces Toyota, Ford, and Stellantis to halt operations
    Automakers Toyota, Ford and Stellantis have halted some production as anti-COVID-19 mandate protestors blocked the US-Canada border crossing, reported Reuters on 10 February. Copycat protests spread to New Zealand, France, and Australia. Jen Psaki White House spokesperson, said, "I think it's important for everyone in Canada and the United States to understand what the impact of this blockage is—potential impact—on workers, on the supply chain, and that is where we're most focused," Si...
    Toshiba restarts chip production at plant after earthquake
    Toshiba has resumed its chipmaking production in its Oita, Southern Japan facility after it was hit by an earthquake, the company said in a press release on 26 January. Significance: The plant reported damage due to the quake and had initially halted all operations and post analyzing the damage and other interior impact the facility began production. Toshiba confirmed the safety of all its employees and said in a statement that no substantial loss occurred to either infrastructure or manufact...
    Hyundai shuts down its engine development team amid focus on electric cars
    According to a press release published on BusinessKorea on 24 December, Hyundai Motor Group abruptly closed the Engine Development Center at its research and development (R&D) Headquarters. It has officially stated that it will no longer release new models powered by internal combustion engines. On 17 December, the company completed the largest-ever reorganization of its R&D headquarters. The Namyang Research Institute, which employs 12,000 R&D personnel, is a critical organi...
    Toyota halts production at two Japanese factories due to supply chain shortages
    Toyota Motor Corp has halted production at two factories in Japan due to a supply shortage, according to a press release dated 9 December, a spokesperson told Reuters. Production at the factories was halted on 8 December, and the suspension is expected to last about three days, according to a spokesperson for Reuters, who added that this was due to a supply chain disruption in Japan as well as a labor shortage in Vietnam caused by the COVID-19 pandemic. Significance: As a result of th...
    GM to retrofit new car heated seat function on vehicles sold in mid-2022
    General Motors said that vehicles sold without heated and ventilated seat features due to the global semiconductor shortage will be eligible starting in the middle of 2022 for a retrofit that will help activate these seat function features according to a statement by Reuters on 19 November. Significance: The US automaker will bear the cost to retrofit new vehicles built without the chips needed for the heated and ventilated seat features and expects the chips to be available for the retrofits...
    German supplier Eberspaecher hit by cyberattack
    Eberspaecher Group, a German automotive exhaust and heat management system supplier was hit by an organized cyberattack, it said in a statement posted on their website on 25 October. Significance: Commenting on the attack the company said, “Our team is working at full speed with external cybersecurity specialists and data forensics experts to eliminate threats and restore normal operations,”. “The relevant investigative authorities have been called.” The ransomware attack has disru...
    Bridgestone to consolidate its seat pad manufacturing in Japan to three plants
    Japanese auto parts manufacturer Bridgestone Corporation announced via press release on 8 October that it will be consolidating its plants for automotive seat pads in Japan as part of its global expense and cost structure review plan. According to the release, Bridgestone will be closing its Ageo Chemitech plant in the fourth quarter of 2023 and concentrating the manufacturing of pads in its other Nabari, Hofu, and Tosu plants. The company believes that this move will contribute to ...
    Volkswagen's Skoda Auto halts production for two weeks
    According to a press release on Retuers dated October 18th, Volkswagen's Skoda Auto began a two-week outage on Monday as the carmaker deals with a global shortage of chips and other components, according to CTK news agency. Skoda plans to finish 10,000 unfinished vehicles during the outage, which will leave only one production line operational, according to CTK. "Skoda Auto has been struggling with a big shortage of critical components, which has forced it to limit production significantly...
    Quality certification restored for Akebono's Iwatsuki and Sanyo manufacturing subsidiaries
    Japanese manufacturer of brake products Akebono announced via a press release on 1 October that the IATF 16949 certification had been restored for its Iwatsuki and Sanyo brake product manufacturing subsidiaries. According to the company’s press release, the quality management certifications for the two subsidiaries has been restored after a series of audits conducted by the Lloyd’s Register Quality Assurance Limited (LRQA). The certification organization had withdrawn the certificati...
    Nissan Mexico to halt production due to chip shortage
    According to a Reuters press release dated 6 October, Japanese automaker Nissan will implement temporary work stoppages at two Mexican plants for several days in October due to production adjustments required to manage a semiconductor chip shortage, its Mexico unit said. "We continue to make adjustments to our production process to minimize the impact this has had on the automotive industry locally and globally," said Nissan, adding it was working to recover production and make good on delive...
    Ford to stop manufacturing cars in India
    Michigan-based vehicle manufacturer Ford Motor Company has announced on 9 September that the company will stop manufacturing cars in India. The move comes as part of a larger restructuring exercise wherein the company plans to continue its operations in India via its Chennai-based Business Solutions team but cease local manufacturing amid accumulating losses. In its official statement, the company said that it plans to significantly expand Ford Business Solutions team and implement the strate...
    Quality certification restored for Akebono's Yamagata and Fukushima manufacturing subsidiaries
    Japanese manufacturer of brake products Akebono announced via a press release on 6 September that the IATF 16949 certification had been restored for its Yamagata and Fukushima brake product manufacturing subsidiaries on 27 August and 3 September respectively. According to the company’s press release, the quality management certifications for the two subsidiaries had been restored after a series of audits conducted by the Lloyd’s Register Quality Assurance Limited (LRQA), the certification...
    Tata Motors forecasts semiconductor shortage to impact offtake volumes in coming months
    Indian vehicle manufacturer Tata Motors Ltd forecasts that semiconductor shortage would continue to impact its monthly production schedules in the coming months. In a regulatory filing on 1 September, the company said that while semiconductor shortage continues to impact the vehicle production globally, the surge in new coronavirus cases across East Asia has worsened the supply situation. “The recent lockdowns in East Asia have worsened the supply situation and hence Tata Motors is forced t...
    Stellantis to halt production at Sevel, Italy plant over chip shortage
    According to an ETAuto press release dated August 27, production at a Stellantis plant in Italy producing light commercial vehicles will be halted next week due to a semiconductor shortage, a carmaker spokesperson said on Friday, confirming a trade union statement. "I can confirm production at the Sevel plant will be suspended next week due to a shortage of chips from a supplier," the spokesperson said. Significance:Carmakers, who are increasingly reliant on electronic components, face sti...
    Need to develop alternate, localized supply chain to mitigate risks, says Hyundai India CEO
    There is a need to develop an alternate and localized supply chain to mitigate the impact of disruption and push localization in the domestic automotive sector, SS Kim, managing director and CEO at Hyundai Motor India said, according to a report filed by the news agency PTI on 27 August. Kim said so while delivering a keynote address at the Automotive Component Manufacturers Association of India (ACMA) annual session organized on 26 August. Kim said that to achieve significant localization...
    Volvo to halt manufacturing at Gothenburg, Sweden, plant due to chip shortage
    Swedish car maker Volvo Cars has stated that it will suspend production at its facility in Torslanda, on the outskirts of Gothenburg in Sweden, next week owing to the global shortage of semiconductor chips. According to a report filed by business news agency Reuters on 23 August, Volvo Cars stated that it is likely to resume manufacturing operations on 5 September. The Gothenburg manufacturing facility had a similar production hold approximately a fortnight ago. The company is also ...
    Toyota plans to cut production in the US as COVID-19 rattles supply chain
    The maker of popular Land Cruiser sports utility vehicles (SUVs), Toyota Motor plans to cut down its vehicle production in North America in August and September as a resurgence of COVID-19 cases rattle the automakers supply chain, according to a report filed by The Dallas Morning News on 19 August. It said that the carmaker plans to produce a total of 170,000 fewer vehicles in August and September combined in North America. The production cut scheduled for September would translate to about 4...
    Hyundai temporarily halts operation at Brazilian plant amid chip shortage
    According to a press release on Yonhap News dated 7 July, Hyundai Motor Co. has suspended operations at its Brazil plant for the first time since it opened in order to deal with prolonged automotive chip shortages, highlighting serious supply chain disruptions. At its Brazil plant, the company used to produce 300,000 vehicles per day in a three-shift system. According to sources on Tuesday, the largest South Korean carmaker has halted operations at its Piracicaba, São Paulo plant since Mo...
    Ford to shut several plants in North America for few weeks due to semiconductors shortage
    According to a CBS News press release dated 30 June, Ford Motor Company announced the closure of several plants in the United States for a few weeks in July and August due to a global semiconductor shortage. The vehicles affected include the Ford F-150, Mustang, Escape, and Lincoln Nautilus, among others. "The global semiconductor shortage continues to affect global automakers and other industries in all parts of the world," the company said in a statement. "While we continue to manufacture n...
    Subaru to temporarily shut its plants in Japan due to chip shortage
    Subaru Corporation plans to shutdown its plants in Japan in July on account of a global shortage of semiconductors, Reuters reported on 18 June. The Japanese carmaker’s production facilities located in the Gunma region, northwest of Tokyo, will be idle on 16 July as part of production adjustment due to the shortage of semiconductors, the news agency reported, quoting a company spokesperson. Another Japanese carmaker, Suzuki Motor Corporation is also looking to slash production next month...
    ZF Steering Gear (India) to temporarily suspend MP plant for ten days in June
    Steering gear systems supplier ZF Steering Gear (India) has announced that its plant in Madhya Pradesh will remain closed for 10 days, reports Business World quoting a regulatory filing the company has submitted. Significance: ZF Steering Gear (India) has suspended operation at its Pithampur plant in Madhya Pradesh from 10 June to 20 June, due to lower demand and piling up of finished goods inventory. ZF manufactures power and mechanical steering gear systems for commercial vehicles and tract...
    Indian auto component industry's revenue to drop 10–12% y/y in FY 2021, says ACMA
    The Automotive Component Manufacturers Association of India (ACMA) forecasts that the auto component industry’s fiscal year (FY) 2020–21 revenue would decline 10–12% year on year (y/y) on account of COVID-19 led disruptions. The lobby body, however, is expected to release annual results on the industry’s performance during the last fiscal quarter later this year. “We have not yet prepared the actual numbers, but we expect that the auto parts industry has performed better than t...
    Apollo Tyres resumes operation at Kerala plant
    Apollo Tyres has announced that it has received permission to resume operations at its plant situated at Perambra in Kerala, India, from 21 May, according to an Economic Times report. Significance: On 17 May, the company had reported the that it was closing the Perambra plant till 23 May, in accordance with government directives issued by the District Government Authority, to prevent the spread of second wave of COVID-19 pandemic ongoing in India. “The operations of our plant situated at...
    Bosch halts production at its plant in Nashik, India until 23 May
    Bosch has announced the suspension of operations at its Nashik plant in the Western Indian state of Maharashtra from 12 May until 23 May. The suspension is owing to a government-mandated lockdown to combat the rising number of COVID-19 virus infections. In a press release dated 12 May, Bosch said that the shutdown of operations will marginally impact the supplies to OEMS as well as the automotive aftermarket segment, which is already reeling with lockdowns and supply-chain issues. Signific...
    Stellantis to extend downtime at its Chrysler plant in Ontario, Canada over chip shortage
    Stellantis will extend its downtime by a week at its Chrysler minivan plant in Ontario, Canada, The Detroit News reported on 11 May. The extension comes as a shortage in automotive semiconductors continues to cripple vehicle production. The plant will be idled for the week beginning 17 May. The unit, which manufactures Pacifica and Voyager models, has been down since March and was shut down for three weeks in February. The auto chips are used in electronics from the steering wheel to the infotai...
    Toyoda Gosei announces proposal to close UK manufacturing facilities
    Toyoda Gosei Co., Ltd. has announced plans to close its UK manufacturing facilities. According to a company press release on 28 April 2021, its subsidiary Toyoda Gosei UK Ltd. (TGUK) has informed its employees of a proposal to close the business in the United Kingdom. TGUK employs 458 people as of 31 March 2021. TGUK has two plants—the Rotherham plant, which makes weatherstrips, and the Swansea plant that makes interior and exterior parts for the automotive industry. Significance: ...
    Continental to shut Aachen, Germany tire plant by end of 2022
    Continental has announced plans to shut its tire plant in Aachen, Germany, by end of 2022. According to a company press release on 27 April 2021, in a reconciliation of interests and comprehensive social plan, Continental and the employee representatives of the tire plant in Aachen have agreed on the general conditions for the socially responsible discontinuation of tire production by the end of 2022 at the latest. The social partners have agreed to continue tire production at the Aachen plant w...
    Stellantis extends closure of Windsor Assembly Plant in Canada for a week due to chip shortage
    Stellantis has extended the suspension of operations at its Windsor Assembly Plant for another week as the automaker grapples with the shortage of automotive semiconductors, Windsor Star reported on 16 April. The plant has been idle since 29 March and will restart on 3 May. The initial target was to resume operations on 26 April. The suspension at Windsor assembly plant would take the total number of weeks to seven this year. The plant was previously shut down for three weeks in February and ...
    Ford to idle plants in US and Turkey due to semiconductor shortage
    A US carmaker Ford Motor has announced plant shutdowns in the United States and Turkey owing to the global semiconductor shortage, Reuters reported on 15 April. Five facilities will be impacted. Ford announced production cuts during the weeks of 19 and 26 April in Chicago, Flat Rock, Michigan, and Kansas City, as well as implementing a reduced schedule at its Ohio assembly plant in the US. Ford also announced downtime for its Louisville, Kentucky truck plant the weeks of 26 April and 3 May, and ...
    Subaru to idle Japan plant due to semiconductor shortage
    Subaru Corp will shut its Yajima plant in Japan between 10 and 27 April due to a shortage in semiconductor supplies, Reuters reported on 5 April. The shutdown will impact the production of 10,000 vehicles. The automaker is expected to restart all production lines at the Yajima plant from 10 May, adding that the impact on the group’s financial results is uncertain. Subaru manufactures some of its popular models such as the Legacy sedan and Forester SUV at the Yajima plant. Significance: T...
    Ford suspends operations at two US plants due to chip shortage
    Ford Motor is idling production at two truck plants that make its best-selling F-150 pickup on the back of the global semiconductor shortage, reports Bloomberg Quint. The truck plant in Dearborn, Michigan, US, will shut for two weeks starting April 5. Ford will also cease production of the F-150 at its Kansas City plant next week. The company is canceling overtime shifts at both manufacturing facilities through June. Significance: Ford is one of the several automakers shutting down plant...
    NIO to suspend operations at its Hefei plant in mainland China due to chip shortage
    Mainland China-based electric vehicle (EV) maker Nio has suspended production for five days at its Hefei plant due to a shortage in automotive semiconductors, Reuters reported on 26 March. NIO cut its first quarter delivery forecast to around 19,500 vehicles, compared to the 20,000–20,500 vehicles it had earlier forecast. Significance: Earlier in March, NIO said it expects a shortage in supply of semiconductors and batteries to impact its EV production in the second quarter. In February 202...
    Hyundai to idle Ulsan No.1 plant in South Korea due to semiconductor shortage
    Hyundai Motor is set to suspend production at its Ulsan No.1 plant in South Korea due to a shortage in semiconductors and components, Reuters reported on 29 March. The plant will be shut between 7 and 14 April. Supply issues reportedly involve front view camera systems for Kona SUV and power electric modules for the IONIQ 5 model. “We are closely monitoring the situation to take prompt and necessary measures and optimize production in line with the supply conditions,” Hyundai said in a st...
    Stellantis to halt production at Melfi plant in Italy in first half of April due to low demand
    Stellantis has decided to suspend production at its Melfi plant in Italy from 2 April to 12 April, Reuters reported Italian labour union UILM saying on Monday. The company is adjusting production in response to week vehicle demand triggered by the COVID-19 pandemic. The Melfi plant produces Jeep Renegade and Compass as well as Fiat 500X. All of the 7,000 employees that work at the plant will be put on a furlough scheme for the period. Significance: Stellantis has been repeatedly adjusting pro...
    Stellantis to idle five North American plants due to semiconductor shortage
    Stellantis is set to temporarily suspend operations at five plants in North America as the automotive industry continues to feel the supply chain pressure due to a shortage of semiconductors. According to a Detroit Free Press article on 26 March, the idling of plants in the United States, Canada, and Mexico may go on for several weeks beginning 28 March. The shutdowns are expected to directly affect over 18,300 employees at the five plants, which produce trucks, sports utility vehicles (SUVs)...
    GM extends production cuts in North America due to semiconductor shortages
    General Motors has extended production cuts at some of its North American plants as the automotive industry continues to suffer losses due to the global shortages in semiconductors. Reuters reported on 24 March that GM will idle operations at its Wentzville, Missouri assembly plant in the United States during the weeks beginning 29 Marchand 5 April. It will also extend the downtime at its Lansing, Michigan plant by two weeks. GM’s San Luis Potosi assembly plant in Mexico will resume product...
    Ford to adjust vehicle production in US due to semiconductor shortage
    Ford is expected to adjust vehicle production in the US after cutting the number of shifts at the Kentucky Truck Plant in Louisville and shutting down the Ohio Assembly Plant in Avon Lake, Detroit Free Press reported on 22 March. The forced adjustment is due to the global semiconductor shortage plaguing the automotive industry. Both plants are scheduled to return to full production on 29 March. While production at the Ohio Assembly will be stopped completely, the plant in Kentucky will be ope...
    Toyota suspends manufacturing in Czechia due to chip shortage
    Toyota Motor has suspended operations at its Czechia plant for two weeks due to a shortage of automotive semiconductors, Bloomberg reported on 20 March. The Kolin facility, which manufactures the Aygo hatchback, will have operations suspended starting 22 March 22. Suspension is caused by the low supplies of semiconductors due to production delays after cold weather in the US, company spokeswoman Shiori Hashimoto said as reported by Bloomberg. Significance: Toyota becomes the latest Japan...
    Renesas suspends production at Japanese plant damaged by fire
    Renesas’ operations at a Japanese plant has been suspended after a fire broke out on Friday, Reuters reported. Renesas said that production at the fire-damaged plant will take at least a month to restart. About two-thirds of production on the advanced 300-mm wafer line affected by Friday’s fire is automotive chips. The fire at the Naka plant in northeast Japan destroyed 11 machines, which is roughly 2% of the total manufacturing equipment. Renesas has also indicated that it could take lon...
    Infineon ramps up production at Texas facility in US
    Infineon Technologies has announced on 19 March that it is ramping up production at its manufacturing facility in Austin, Texas. Infineon says production has been resumed and will ramp up over time to pre-outage levels. Operations were suspended following a winter storm in the United States, but infrastructure were functional within a week. “We are pleased that the fab in Austin is up and running after the required shutdown. Based on our latest assessments, the impact will limit our ability...
    Tesla shuts down Model S, X assembly plant in Netherlands
    American electric vehicle (EV) manufacturer Tesla, has announced that it will be shutting down its assembly plant located in Tilburg, the Netherlands. According to a report filed by Electrek on 18 March, the Tilburg plant, which used to perform the final assembly of the Tesla Model S and the Model X, may be repurposed. Tesla’s Tilburg manufacturing facility, which covers 78,000 square meters (approximately 840,000 square feet), was opened in 2015. In addition to final as...
    Toyota to cut production at four North American plants over supply chain issues
    Toyota will cut production at four plants in North America, Reuters reported on 17 March. The plants mentioned are in Kentucky and West Virginia in the United States and in Mexico. Toyota has attributed the production cut to “a shortage of petrochemicals” and “recent severe weather conditions”.  The cuts will impact production of the Camry, Camry Hybrid, Avalon, Avalon Hybrid, RAV4 Hybrid, Lexus ES 350, Lexus ES 300h, and Tacoma models, Reuters reported, quoting an official Toyot...
    Honda to suspend production at majority of plants in US, Canada due to supply chain issues
    Honda Motor will temporarily suspend production at most US and Canadian auto plants for a week, Reuters reported on 17 March. The Japanese automaker said that the impact from COVID-19 pandemic, congestion at various ports, the microchip shortage and severe winter weather over the past several weeks have led to the suspension. While some plants are expected to have smaller production cuts next week, Honda said the timing and length of production adjustments could change. Significance: ...
    NXP resumes initial operations at Texas manufacturing facilities in US
    NXP has announced that it will resume initial operations from its Austin, Texas manufacturing facilities in the United States, according to a company press release on 11 March. NXP had suspended operations earlier this year when a severe winter storm gripped the Southern US state, disrupting gas, electricity, and water supplies. The storm had impacted NXP’s two wafer manufacturing facilities in Austin and caused a full shutdown that began on 15 February. “The weather conditions and utilit...
    GM idling Lansing Grand River assembly plant in US due to semiconductor shortage
    General Motors will temporarily suspend operations at Lansing Grand River Assembly plant due to a global semiconductor shortage, Lansing State Journal reported on 11 March. The idling is expected to last through the end of March. The Grand River Assembly plant, which builds the Chevrolet Camaro and the Cadillac CT4 and CT5, employs around 1,400 people. “In general, impacted represented seniority employees will receive about 75% of their compensation through a combination of unemployment and...
    Winter Storm Uri impacts on automotive supply chain
    The Winter Storm Uri that hit the United States Gulf Coast (USGC) region in the third week of February 2021 resulted in one of the worst electric grid outages in the United States, leaving millions of people without electricity and water for four days in the state of Texas. The blackout, along with freezing cold temperature, also forced almost the entire refining and petrochemical industry&nb...
    Chip, battery shortages to limit NIO EV production through June
    Chinese electric vehicle (EV) startup NIO expects a shortage in supply of semiconductors and batteries to impact its EV production in the second quarter, CNBC reported on 2 March. In February 2021, the company had ramped up its monthly vehicle production at its Hefei plant in mainland China to 10,000 units from 7,500 units earlier. However, the current shortage in semiconductors and batteries will force NIO to reduce output to 7,500 units a month through June 2021. NIO expects a recovery in vehi...
    GM extends production downtimes at North American plants due to semiconductor shortage
    American automaker, General Motors, has provided an update on the ongoing semiconductor chip shortage crisis in the automotive industry. According to a press release issued by GM on 3 March, the company stated that it is extending the previously announced downtime on all production shifts at three of its manufacturing facilities in North America. The downtime of manufacturing shifts at the company’s facilities located at Fairfax in Kansas and CAMI in Canada are being extended through at lea...
    Honda to idle operations at Sumare plant in Brazil due to semiconductors shortage
    Honda will suspend operations at its Sumaré plant, near São Paulo in Brazil, due to semiconductor supply constraints, Auto Industria reported on 24 February. The idling, between 1 and 10 March, will impact the production of the Civic model line. Honda had already suspended operations at Sumaré plant between 5 and 12 February 2021 due to the chip shortage. According to the automaker, the two-stage shutdown was necessary because of the impact of the COVID-19 pandemic on global supply chains,...
    Toyota extends production suspension at Japanese plants due to parts shortage
    Toyota has further extended production suspension across 12 production lines at 8 manufacturing plants in Japan during 22–23 February due to a shortage of autoparts, the company said in a press release on 22 February. The extension affects the company’s plants in Takaoka, Tahara, Miayata, Fujimatsu, Yoshiwara, and Hamura. In addition, plants operated by Gifu Auto Body Shop and Toyota Industries Corporation will also keep their manufacturing operations suspended during that time period. ...
    Automakers suspends production in North America amid severe winter weather
    Several automakers, including Ford, GM, Nissan, Toyota, and Volkswagen have suspended operations this week at their manufacturing plants in the United States and Mexico amid severe cold weather, Reuters reported on 18 February. Ford temporarily closed its plants in Kansas City, Michigan, and Kentucky, in the US, as well as its Hermosillo plant in Mexico. Volkswagen decided to suspend production at its plant in Puebla, Mexico on Thursday and Friday due to limited natural gas supply. GM and Audi a...
    Toyota to suspend production at nine plants in Japan due to earthquake
    Toyota has decided to suspend production at its nine vehicle manufacturing plants in Japan this week after a powerful earthquake, measuring 7.3 on the Richter scale, struck the coast of the Tohoku region on 13 February. According to a press release by the Japanese automaker on 16 February, manufacturing operations will remain suspended across 14 production lines at nine plants located in five prefectures, including Aichi, Iwate, and Fukuoka. While some plants will suspend manufacturing operation...
    Toyo Tire to close Silverstone plant in Malaysia in June 2021
    Japan-based Toyo Tire Corporation announced plans to is end production at its wholly-owned Malaysian tire manufacturing subsidiary Silverstone Bhd located in Perak by June 2021, according to a report by Tyre Press on 15 February. Subsequently, the company also intends to dissolve the subsidiary once the necessary preparations have been completed. The dissolution of the Silverstone subsidiary (Silverstone Berhad) will commence by 31 December 2021. In accordance with the resolution to cease produc...
    Renesas halts operations at Ibaraki plant in Japan due to earthquake
    Renesas Electronics has halted operations at its Ibaraki plant in Japan following a magnitude 7.3 earthquake, Bloomberg reported on 14 February.  Renesas will first inspect the building’s clean rooms. Updates on resumption of operations and the effects on production were not immediately known. Renesas has power and all utility equipment functioning, but halted production for detailed inspections of the clean rooms as a precaution, Bloomberg reported, citing a company spokeswoman. Signi...
    Mitsubishi to close climate control components plant in Franklin, US
    Japan-based Mitsubishi Heavy Industries Ltd. is planning to shut down all operations of its climate control division located in Franklin, Indiana, US. According to a statement issued by Mitsubishi Heavy Industries Climate Control America to the mayor of Franklin city and the Indiana Department of Workforce Development on 26 January, the company mentioned the reason for this closure, which is expected to be permanent, was the lack of sales and no future business. Significance: There are cur...
    Nissan cuts production at Mississippi plant in US over semiconductor shortage
    Nissan Motor has cut vehicle production at its Mississippi assembly plant in the United States as a result of the semiconductor supply shortage plaguing the automotive industry, Times News Express reported in January, citing a factory memo obtained by Automotive News. Nissan manufactures pickups, sedans, and commercial vans at the plant. “Nissan is adjusting production capacity within our North American manufacturing operations due to the global semiconductor shortage. We continue to work c...
    GKN Automotive to close Birmingham plant in UK
    GKN Automotive is planning to shut down its production facility in Birmingham, United Kingdom, in the next 18 months, Autocar reported on 28 January. The plant closure is expected to impact 519 jobs. “An increasingly competitive global market means that the site is no longer viable. Supporting our people is our first priority as we consult on this proposal. Employees at the site are being notified today and support is being made available to them throughout this process. We will then comm...
    Ford, GM reduce operations due to semiconductors shortage
    Ford will be shutting down its Louisville assembly plant for another two weeks due to a shortage in supply of semiconductors, WKYT reported on 22 January. The plant will be down the weeks beginning January 25 and February 1. General Motors canceled overtime on January 23 at its Bupyeong plant in South Korea. This move is also an effect of the shortage of automotive semiconductors, as reported by Business Korea on 22 January. Significance: The automotive industry has been hit by a supply s...
    Renault’s Revoz suspends vehicle production in Slovenia due to auto parts supply disruption
    Revoz, a unit of French automaker Renault, suspended production at its Novo Mesto plant in Slovenia on 21 January) due to disruption in supply of auto parts, SeeNews reported on 20 January. The plant, which produces Renault Twingo hatchback, faced delay in components supply from a local supplier Treves. The plant is expected to resume operations next week. Treves, which makes sound and thermal insulation components, suspended supplies of auto parts to Revoz after its factory was damaged by a ...
    Subaru cuts production in Japan amid shortage of semiconductor parts
    Subaru suspended manufacturing operations at its plants in Japan on 15–16 January due to interruption in the deliveries of certain components using semiconductors, the automaker said in a press release. The company’s operations was disrupted at its Gunma manufacturing plant. According to a reports by Reuters on 14 January, the Japanese automaker also plans to reduce production at its Indiana plant in the US in January due to the same supply chain issues. Significance: Several automaker...
    Honda plans another production suspension at UK plant next week amid continuing supply chain issues
    Honda is planning another production suspension at its Swindon plant in the UK amid continuing supply chain issues, Reuters reported on 13 January. The Japanese automaker will halt production at the British plant for four days next week from 18 to 22 January. “The situation is currently being monitored with a view to restart production on Friday 22 January,” the news agency reported Honda saying in a statement. Significance: This is third production suspension announced by Honda at its Sw...
    Volkswagen plans additional production cut at German plant due to shortage of semiconductors
    Volkswagen would further cut vehicle production at its main plant in Wolfsburg, northern Germany, due to continuing shortage of semiconductors, Reuters reported on 13 January. The Wolfsburg plant builds the Volkswagen Tiguan and Touran as well as SEAT Tarraco models. Volkswagen said in a statement that its Wolfsburg’s plant workers producing these models will work reduced hours. Significance: Several automakers have adjusted vehicle production due to the supply shortage of semiconducto...
    Honda resumes manufacturing in UK after temporary halt
    Japanese carmaker Honda has reportedly resumed manufacturing operations at its UK factory. According to a report filed by news agency Reuters on 6 January, production was suspended for two days owing to delays in the global supply chain. Honda’s manufacturing operations operate on the ‘just in time’ (JIT) methodology, where components are brought into the production plant only when required. The company’s production plant in Swindon, United Kingdom, is due to be closed perma...
    Honda temporarily halts vehicle production at UK plant due to supply delays
    Japan-based carmaker, Honda, has stated that it is halting manufacturing operations at its UK factory on 5 and 6 January due to delays in its global supply chain. According to a report filed by news agency Reuters on 5 January, Honda operates on the ‘just in time’ (JIT) methodology for its manufacturing processes, where parts and components are brought into the plant only when they are required. The company had suspended production activities at its plant in Swindon, UK, in December 2020 ...
    MANN+HUMMEL to close Wolverhampton plant in UK
    The MANN+HUMMEL Group, a filtration expert, plans to close its main manufacturing facility at Hilton Cross Business Park in Wolverhampton, United Kingdom, as the company continues to review its operational footprint, according to a press release on 24 November 2020. The move will affect around 230 employees. “Over the past months, several opportunities have been presented and evaluated to improve the plant’s competitiveness. Unfortunately, we concluded that savings or other measures could...
    American Axle to close Ohio plant in US severely damaged by fire
    American Axle and Manufacturing Holdings (AAM) will close its forging plant located in Malvern, Ohio, US, that was destroyed in a fire almost two months ago, according to a report by Automotive News on 18 November. The plant employs approximately 275 workers. The Colfor plant caught fire on 22 September. The devastating fire ignited after a press malfunctioned and sprayed hydraulic oil onto hot parts that were being forged, according to fire officials. No injuries were reported, however the flam...
    Bridgestone to close Port Elizabeth tire plant in South Africa
    Bridgestone South Africa (BSAF) has finalized the process to close its tire manufacturing plant in Port Elizabeth, Eastern Cape in South Africa, the company announced in a press release on 3 November 2020. The plant is operational until 15 November. The move affects 252 workers. “The proposal to close the plant was not taken lightly and the impact on employees has been taken into account from the outset,” said Jacques Fourie, BSAF chief executive. “We endeavored to treat employees with ...
    SKF announces plans to close Avallon bearing plant in France
    Sweden-based supplier, SKF, has announced a consolidation and restructuring of various manufacturing, business and administrative functions in France. According to a press release issued by SKF on 3 November, the company stated that its manufacturing of slewing bearings would be moved from Avallon to St-Cyr-sur-Loire, resulting in the proposed closure of the Avallon factory. With this shift, the company would be able to make use of the existing service center and logistics capabilities in Saint-...
    FCA suspends operations at Windsor plant in Canada for three weeks
    Fiat Chrysler Automobiles Canada will suspend operations at its Windsor Assembly Plant for three weeks beginning 28 September through 16 October, according to a report by Windsor Star on 22 September. Normal shift schedules are expected to resume the week of 19 October. The plant, which employs about 4,500 workers, makes the Pacifica and the Grand Caravan. “The Windsor Assembly Plant is planning to adjust its upcoming production schedule to better align with market demand,” FCA Canada’s...
    COVID-19 impact: Cimos closes Maribor manufacturing plant Slovenia
    Slovenian car parts manufacturer Cimos has permanently closed its plant in the northeastern town of Maribor due to lasting financial difficulties related to problems in the sector and the COVID-19 pandemic, SeeNews reported on 21 September. The management will offer the plant's 150 workers at the plant severance pay packages or employment at the company's subsidiaries in Slovenia and neighboring Croatia. Significance: Cimos manufactures mainly turbo compressor and turbine housings, powertrain...
    Fire at AAM plant may impact GM production output
    A recent fire at the production plant of American Axle and Manufacturing (AAM) located at Malvern, Ohio, could have an impact on the manufacturing output of General Motors. According to a post published by General Motors enthusiast blog, GM Authority, on 24 September, the plant was evacuated during the fire and no injuries were reported. General Motors, which accounted for well over one third of AAM’s business in 2019, is currently working to minimize the potential impact that the fire coul...
    French government to discuss alternatives scenarios for planned closure of Bridgestone plant
    France is planning to discuss alternative scenarios due to the planned closure of a Bridgestone plant in the country, Reuters reported on 21 September quoting junior Economy Minister Agnes Pannier-Runacher. The plant is situated in the Northern French city of Bethune. “We have agreed (with Bridgestone) to have in 2 to 3 weeks a meeting ... to review the different scenarios which are alternative scenarios to a site closure,” Pannier-Runacher said, as quoted by Reuters. Significance: Bri...
    Bridgestone to cease operations at Bethune plant in France due to market volatility
    Bridgestone will cease production at its passenger tire plant in Bethune, France "in response to the challenging long-term outlook for the European passenger tire market,” the company announced in a press release on 16 September. The closing is not expected to take place before the second quarter of 2021, Bridgestone said. The proposal could impact 863 employees. To mitigate the impact on the employees, Bridgestone will offer pre-retirement measures, support for the reassignment of employee...
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