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Due to a shortage of chips, Nissan will close its plant in Tennessee, USA for two weeks.

Published :8/13/2021 3:51:51 AM

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According to foreign media reports, Nissan Motor Co. said on August 10 that due to the outbreak of the new crown pneumonia in Malaysia intensified chip shortages, a factory in Tennessee, the United States, will be closed for two weeks starting next Monday.

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It is reported that since the semiconductor shortage began to affect global automobile production at the end of last year, the shutdown time is the longest in the United States for such a large-scale automobile factory. Nissan expects to resume production on August 30. Nissan’s plant in Tennessee covers an area of 6 million square feet and employs 6,700 people. It produces six Nissan models, including the company’s highest-selling small SUV Rogue in the United States.

Major automakers have been working hard to retain chips for the best-selling vehicles in the United States, mainly SUVs and pickup trucks. However, pickup truck plants will occasionally be closed, including three GM plants this week. For this reason, the consulting firm Guidehouse Research Principal analyst Sam Abuelsamid said that the Tennessee plant is vital to Nissan, and this also indicates that the semiconductor shortage is unlikely to end later this year.

Phil Amsrud, senior principal analyst at IHS Markit, said that the chip shortage situation was beginning to improve, but Delta began to become popular in factories in the semiconductor supply chain and made the problem serious.

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