Consumer goods such as laptops are flying off the shelves, requiring lots of chips.
As well, car production rebounded quicker than expected.
This has forced a number of automakers to idle various assembly lines.
The situation is a perfect storm of various circumstances colliding into each other. The pandemic and lockdowns cut the production of chips. These same lockdowns boosted PC, game consoles, and laptop sales. A massive fire at a chip plant damaged existing supplies and auto production picked faster than expected. The end result is that there are too few semiconductors to go around and, as a result, some manufacturers such as Ford and FCA will need to idle plants.
The list of affected automakers is quite long. Some manufacturers such as Volkswagen have already faced the issue while others, Honda, GAC, and Dongfeng for example, are bracing for a potential upcoming shortage.
Reuters reports that FCA, Ford, Nissan, Toyota will cut vehicle production for the month of January as they are currently facing a shortage. Ford will temporarily halt its Louisville, Kentucky, assembly plant, which builds the Ford Escape and Lincoln Corsair.
FCA will delay the restart of two of its plants, one in Mexico and another in Ontario. Meanwhile, Toyota will cut Tundra production. As for Nissan, the production of the new Note hybrid will be trimmed by 2/3 for the month.