China’s leading electric vehicle manufacturer, Nio (NYSEW:NIO), is shutting down its main factory for five days due to the global shortage of semiconductor chips.
The production halt will start on March 29 and reduce Nio’s first-quarter deliveries by at least 500 vehicles, the company said in a written statement. That puts expected deliveries for the first three months of this year at 19,500, versus the previous forecast of 20,000 to 20,500.
Even with the reduction, Nio is on track for more car deliveries to start 2021 than rival Chinese electric vehicle makers Xpeng and Li Auto.
Global automakers from Ford (NYSE:F) to Honda (NYSE:HMC) have announced production halts due to a shortage in semiconductor chips. The highly specialized supply chain for semiconductor chips has suffered from the impact of the coronavirus pandemic and ongoing political tensions between China and the United States.
Automakers have said that they will try and make up current production shortfalls later this year once the supply of semiconductor chips normalizes.
