The world’s biggest automakers are suspending operations due to the shortage of semiconductors which was worsened by a fire at a Japan plant, according to Bloomberg.
- Ford Motor Co., Toyota Motor Corp., Volkswagen AG, and Honda Motor Co. among those hit by supply issues.
- The shortage came on rising demand for cars and electronics, and was worsened by winter storms in the United States. A plant of Renesas Electronics Corp. was also hit by a fire this week.
- Among the firms hit are Hyundai, Honda, Volvo AB, Ford, Nissan Motor Co., Toyota’s Kolin, Volkswagen, and Mitsubishi which have either suspended or adjusted production due to supply issues.
- Share prices of all the automakers fell this week, except for Volkswagen. The S&P Supercomposite Auto Parts & Equipment Index is also down 10% from a March 17 peak.
- Analysts say production is already vulnerable, and any kind of abnormal occurrence will worsen supply.