Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Nissan has announced that operations in its Smyrna factory in Tennessee will remain suspended for two weeks beginning next Monday due to a shortage of chips brought on by the COVID-19 pandemic. The automaker hopes operations will resume in the week of Aug 30. 


Nissan said in a statement that it will adjust its North American production schedules in August owing to the shutting down of a Malaysia-based supplier due to the outbreak of COVID-19 cases. The Smyrna factory produces six Nissan models including the Nissan Murano, Nissan Maxima and Nissan LEAF. 


The halting of operations in the large Nissan factory is an indication, the semiconductor shortage may not be ending by late this year, contrary to what automakers hope. 


Some factories in the US that make lower volume, less profitable vehicles like sedans have been shuttered for two weeks consecutively, while automakers continue to conserve chips for plants that make the top selling cars and pickup trucks. The shortage and plant closures, coupled with a rising demand in the US have led to a limited supply of vehicles throughout the nation which has led to a surge in prices. 


Leave a Reply

Your email address will not be published.