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VW's Spanish Unit SEAT Increased Production Curb For December Due To Chip Shortage

VW's Spanish Unit SEAT Increased Production Curb For December Due To Chip Shortage
Fresh cuts on production and output for December has been imposed by the Spanish unit of German auto company Volkswagen – SEAT, at the company’s primary car assembly plant close to Barcelona. The company has decided to shut down the factory for five days. The closure decision was taken in lieu of the global shortage of semiconductors chips used in cars the company said.
The planned stoppage of production prior to the Christmas holidays has been brought forward by a week by SEAT. The break in production was initially set to begin after Dec. 23. It is now set to start after Dec. 16.
"The crisis of global semiconductors supply, that affects all the automobile industry, will force us to idle the Martorell plant on 17, 20, 21, 22 and 23 December," the company in a statement.
The statement said that there has been a rebound in demand to pre pandemic levels for the cars from the SEAT and CUPRA brands and the production cuts will further hit the company’s ability to meet the increased demand for its cars.
The statement from the company also added that since Jan. 5 and 6, are holidays, the factory will also close down the next week on Jan. 3, 4 and 7.
All through the current year, a number of production cuts have been implemented by SEAT which included a temporary closure of the Barcelona plant towards the end of August.
In 2019 prior to the emergence of the pandemic, about 500,000 cars had been assembled at the Martorell factory.
Almost all major car makers throughout the globe have been forced to impose curbs in production and targets and temporarily close down plants this year because of pandemic induced disruptions in their global supply chains as well as the shortage in semiconductor chips. The global shortage of chips used by automobile companies started due to booming demand for consumer electronics during the pandemic and the shortage is taking much longer to ease than was expected analysts, experts and auto companies. 
For most modern vehicles, semiconductors have become an integral part as they are used in a range of processes such as powering of devices used in automobiles – from fuel injection to running the in-car entertainment systems.

Christopher J. Mitchell

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