Chinese electric vehicle start-up Nio closes factory for 5 days because of global chip shortage

Chinese electric vehicle start-up Nio said Friday it is closing an industrial facility for five days because of the global shortage in semiconductors.

The production stop starting March 29 will decrease Nio’s first-quarter deliveries by at least 500 vehicles, the organization said.

That puts anticipated deliveries for the initial three months of the year at 19,500, versus the recently reported estimate of 20,000 to 20,500.

Indeed, even with the decrease, Nio is on target for more vehicle conveyances to begin 2021 than rivals Xpeng and Li Auto.

Global automakers have declared production ends because of a deficiency in semiconductors. The profoundly specific supply chain for chips has experienced the effect of the Covid pandemic and trade strains among China and the U.S. that started under the Trump administration.

Topics #Chinese electric vehicle #electric car #Electric vehicle #global chip shortage #Nio