Nissan to temporarily close Mexican plant over chip shortage

Japanese automaker Nissan’s Aguascalientes factory in central Mexico will shut operations for seven days in May due to a lack of semiconductors, the automaker said on Thursday.

The company added that it continues to make adjustments in its production processes “to minimize the impact” that the lack of inputs has generated in the automotive industry locally and globally.

The auto industry has been hit by worldwide shortages of chips and has seen halting of plants elsewhere in the recent times.

This week, Ford Motor also halted output in Mexico.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.