NIO announces temporary suspension of production of electric cars

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NIO announces temporary suspension of production of electric cars


NIO announced that the semiconductor shortage has forced the company to temporarily suspend vehicle production activity at the JAC-NIO manufacturing plant in Hefei, China.
According to the press release, the break will take five working days, starting March 29, 2021.

Several days over a whole month, it’s not the end of the world, but of course a notable setback, especially for the manufacturer who has worked very hard to create high momentum. The results of the past two months have been remarkable.

The expected quarterly result of electric car sales has been reduced by around 1,000 units, to 19,500 (total of three models: ES6, EC6 and ES8):

“The overall semiconductor supply constraint impacted the company’s production volume in March 2021. The company plans to deliver around 19,500 vehicles in the first quarter of 2021, adjusted from previously released outlook of 2021. 000 to 20,500 vehicles.

NIO is no exception. The semiconductor shortage (also known as the chip shortage) is industry-wide and has already affected several manufacturers.

One of the reasons is the surprisingly high demand for chips from the consumer electronics industry.

According to ReutersFord and GM are also affected by the shortage and even expect lower profits up to $ 2.5 billion and up to $ 2 billion respectively in 2021 due to the constraints. The list of manufacturers who have alluded to chip constraints includes Honda, Volvo, Stellantis (FCA – PSA) and Nissan.

Toyota would be in a pretty good position, as it has forced its suppliers to hold onto reserves of chips (and other parts) after various crises in previous years. We can guess that after 2021 there will be more manufacturers with reservations than ever before.

It will be extremely interesting to see if the EV industry will be able to secure enough chips to support its rapid growth this year.

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