Semiconductor crisis: Ford Romania to stop production at Craiova factory for 8 days

by Romanian Reporter - Thursday, February 25, 2021 12:23 PM

Semiconductor crisis: Ford Romania to stop production at Craiova factory for 8 days

After Dacia suspended the car production in its Mioveni plant at the beginning of February for several days, the Romanian branch of the American carmaker Ford announced the closing of the Craiova factory for 8 days, starting with February 26.

The reason is the lack of the microchips used in car manufacturing, the same that affected Dacia's production and a large part of the car industry worldwide in the last months. 

The company's management plans to restart the production on March 10. During the 8 days period, Ford Craiova's employees will be paid according to the agreements between the company and the labor unions and considering the national legislation, according to a statement by the company's representatives for Agerpres.

Increased demand for microchips for the IT industry leads to shortages and difficulties in car manufacturing

The COVID-19 pandemic led to an increase in demand for semiconductors, utilized in various electronic equipment, such as laptops or phones, thus the semiconductors are struggling to fulfill the orders. Additionally, some Chinese manufacturers are affected by the U.S sanctions imposed by the former Trump administration.

The semiconductors affected other carmakers as well. At the beginning of February, Stellantis, the new car manufacturer formed after the merger of French PSA and Italian Fiat Chrysler, decided to suspend the production at the Eisenach (Germany) factory, of Opel cars, and in Zaragoza (Spain), of Citroen and Opel cars.

General Motors, Ford, Toyota Motor Corp, Honda Motor, and Volkswagen are all facing a shortage of chips used in engine management and driver-assistance systems, which mainly come from Asia and especially Taiwan, according to Reuters.

The semiconductor crisis is expected to affect the European car industry also in the next 3-4 months. 

Photo: Ford Romania / Facebook

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