CNH Industrial to temporarily close several factories in Europe due to supply disruptions

Flags with the CNH Industrial logo are pictured outside the CNH Industrial building in Turin, Italy, February 5, 2020. REUTERS / Massimo Pinca / File Photo

October 13 (Reuters) – Italian-American automaker CNH Industrial NV (CNHI.MI) on Wednesday announced it would temporarily shut down several of its European agricultural, commercial and powertrain manufacturing plants due to disruptions in sourcing of components, including semiconductors.

The maker of agricultural machinery, utility vehicles Iveco, construction equipment and powertrains plans to shut down affected factories for eight working days this month, it said in a statement, adding that it was reviewing constantly its production schedules.

Automakers around the world are grappling with the semiconductor chip shortage amid rising post-pandemic demand, forcing several companies to reduce the pace of production in recent months. Read more

In addition, some automakers have warned that the chip crisis will last until 2022, as the industry’s early hopes for a quick resolution have long been dashed. Read more

Report by Anirudh Saligrama in Bengaluru; Editing by David Gregorio

Our Standards: Thomson Reuters Trust Principles.

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