Opel, Volkswagen and Ford have decided to close production sites in Germany for several weeks, being affected by the shortage of microchips which paralyzes factories around the world.
The group of 14 car brands Stellantis announced Thursday the closure “until early 2022” of a plant of its subsidiary Opel in Eisenach in Germany. “The global auto industry is in an exceptional situation due to the pandemic and a lack of semiconductors,” an Opel spokesperson told AFP on Thursday.
The demand for components is very strong in the automotive sector for vehicles increasingly equipped with electronic systems, from the engine to ABS, including airbags and parking assistance. However, in a context of resumption of activity after the lifting of health restrictions due to the pandemic of coronavirus, the manufacturers find themselves in competition with other industries greedy in chips – computers, smartphones, connected objects – which capture a good part of these parts manufactured for the majority in Asia.
Consequence: Volkswagen will also put on short-time work for the next two weeks its flagship plant in Wolfsburg, which notably manufactures its compact Golf and its Tiguan SUV.
Ford will also stop production of its small Fiesta at its Cologne plant until October 31, the brand told AFP, due to “bottlenecks” in the semiconductor market. “We are working hard to improve our situation so that we can resume production as quickly as possible,” said Ford. “However, we assume that there will be repeated production shutdowns for the foreseeable future.”
The manufacturer BMW, which on Thursday raised its profitability forecast for 2021, said it expects “semiconductor supply restrictions” to have an “impact on production and deliveries to customers in the coming years. month “.
In France, Toyota has delayed its return to September and has scheduled for October five days of forced break in its plant in Valenciennes (north-east), which produces the small Yaris and the Yaris Cross SUV. In total, the Japanese giant reduced its global production by 40% in September compared to its initial forecasts.
Daimler and BMW in Germany, but also GM in North America, or even Toyota have also decided to close assembly lines for a few days or weeks – but rarely as long as Stellantis has just decided in Eisenach.
In Brazil, the Franco-Italian-American group will also dismiss 1,800 employees at its Fiat plant in Betim (south-east), who worked at night, from Monday and for three months, to partial unemployment.
Uncertain recovery
In Eisenach, in central Germany, Opel said Stellantis was planning “adjustments in production,” including the disruption of the Grandland X SUV assembly lines “from next week.” The employees concerned will be placed on short-time work and production will resume early next year “if the situation in the supply chains allows it,” said the spokesperson.
This decision “surprised everyone”, protested the spokesperson for the IG Metall union in Eisenach, Uwe Laubach, denouncing an “incredible process”. Consultations are to be launched at the factory on Friday. There was still Tuesday “no indication” that this measure would be implemented, “without consulting the social partners, which is really twisted,” said the trade unionist.
“It is extremely rare for a manufacturer to close a factory for three months,” said expert Ferdinand Dudenhöffer, director of the Center Automotive Research, based in Germany. The Stellantis plant in Sochaux, France, which manufactures the same model, “should take advantage of the fact that short-time working is well compensated in Germany, making this closure more ‘economical’ for Stellantis”.
Some 7.7 million cars will not be produced this year around the world due to the lack of components, a consequence of the recovery after the Covid-19 pandemic combined with a boom in electric vehicles, estimated the firm Alix Partners. Out of a planned total of 84.6 million vehicles, this represents a shortfall of 210 billion euros for the industry, according to a report published last week.
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