WAY, Tennessee: Nissan will shut down its Smyrna, Tennessee, assembly plant for two weeks beginning on Monday due to the ongoing worldwide computer chip shortage.
The two week shutdown will be among the longest for any U.S. auto plant since the semiconductor shortage struck the auto industry.
Nissan also said on Tuesday that it expects auto on production to begin again on 30th August in Smyrna.
Nissan’s 6 million-square-foot Smyrna plant employs 6,700 people. Six Nissan models are manufactured at the plant, including the Rogue SUV, the company’s top-selling U.S. vehicle.
Analysts have noted that the Nissan shutdown might suggest that the semiconductor shortage will not end in 2021, as hoped for.
Since the start of the semiconductor shortage, automakers had given preference to trucks and SUVs when allocating chips.
However, pickup truck plants have occasionally shut down, including three General Motors factories this week.
“It is looking like this will stretch at least into the new year,” said Sam Abuelsamid, Principal Analyst at Guidehouse Research.
The shortage of chips and plant closures, along with strong consumer demand in the United States, has resulted in shortages of new vehicles throughout the country, which has driven up prices.
Outbreaks of Covid infections in semiconductor chip factories in Asia, as well as in shipping companies, have resulted in the shortages, according to industry analysts.
