Romanian carmaker Dacia of French group Renault has decided to shut production in April on the back of shortage of semiconductors.
Short supply of electronic components has started causing hindrances in car production since February, reported local media. The company is dedicated to minimising the effect of semiconductor shortage but reports suggest semiconductor shortage will increase in the second quarter.
The company will be shut for another eight days in April. In February and March, the plant was shut for five days owing to shortage of chips. The company has estimated a loss of 100,000 vehicles for the year while increase in production is only expected in the second half of the year.
Semiconductor shortage persists from the end of 2020 which has lowered production since then and is forecast to continue to disrupt auto production until the end of June quarter. Romania’s car production in February was down 18pc according to Romanian Automobile Manufacturers Association.
Several other auto manufacturers globally are forced to shut production. GM announced production cuts in US at two more plants, scheduled for April too. Volvo has cut production of trucks across all its plants for two to four weeks in the second quarter. Turkish car maker Tofas too has scheduled a temporarily halt in production starting April 5 for a period of two weeks. Nissan, Ford, Hyundai among many other have also halted production temporarily in the previous months.