.A source from the Nikkei newspaper told that Nissan Motor’s British plant will lay off nearly 800 employees. As there is a shortage of semiconductors globally.
There has been low production of chips caused by the Covid-19 pandemic. And, increased sudden demand for the chips from smartphone makers and other electronics companies. Also, being part of the technology maker the factory management suspend the factory for eight days between May 10th and May 19th. Furthermore, A fire accident at a Japanese auto chip plant and winter storms also caused a further shortage in the production of semiconductors.
As the heavy demand increases for chips from electronic companies. Eventually, the heavy usage from consumers who are working from home and playing video games in the pandemic face the restrictions. This happens as Chinese technology companies play a role in the low production of semiconductors.
Nissan Spokesman said to the press,
“A global shortage of semiconductors has affected parts procurement in the auto sector.Due to the shortage, Nissan will adjust production. And take necessary actions to ensure recovery.”
Yet the plan is unofficial, not fully confirmed. Furthermore, the factory employs approximately 6000 employees. And, among them, one-tenth of workers are to be relaxed until the production picks up to the previous state.
Furthermore, the spokesperson added as follows,
“There were times when staff were in work, but there had been some disruption this month and things are not back to normal. Since the current situation on semiconductors is fluid, we expect more disruption to come.”
Since January, other automakers have cut down on production for the very same reason. Till the chip demand is met in the market, the lay-offs from the other factories wouldn’t be surprising.
Closing the other factories
Apart from the Nissan factory, many Japanese factories are to be closed. Which is in the course of “Golden Week” for two weeks in late April. On these days, Nissan’s Kyushu factory will only run for seven days.
Unfortunately, the two other domestic plants of Nissan The Oppama plant and a Nissan Shatai (7222.T) factory in Kyushu will only have night shifts. As decided, for 15 days next month between May 10 to May 28th and another factory Tochigi in eastern Japan will be off for 10 days next month.
Also, the factory which manufactures Toyota Sienna minivan and X-trail SUV is working out to recover the lost production. Once the supply of chips rebound, this shouldn’t be a problem. Furthermore, Nissan USA set forth to amend the production of conductors for its North American operations. As they were highly impacted due to low production.