Chinese electric vehicle maker Nio Inc. on Friday announced the temporary suspension of its production due to the global chip shortage, according to Reuters.
- Nio said it will halt production at its Hefei plant for five working days from next week, and reduce first-quarter delivery forecast by as much as 1,000 vehicles.
- The company now expects to deliver 19,500 vehicles in the first quarter, down from the range of 20,000 to 20,500 it previously forecasted.
- Nio shares fell over 7% in U.S. premarket trading.
- The scarcity of global semiconductor chips comes amid the pick up in demand for electronics as people were forced to work from home and played more video games. Auto demand also increased despite the pandemic.
- U.S. automaker Ford Motor earlier said the shortage could hit profits by up to $2.5 billion this year, while General Motors Co. expects to shave up to $2 billion.