SEAT restricts production due to lack of chips

SEAT restricts production due to lack of chips

FineAuto

Volkswagen SEAT Spain imposed new production restrictions at its main vehicle assembly plant near Barcelona in December, shutting production for five days due to global semiconductor supply problems, the company said on Monday.

SEAT has decided to extend the production hiatus by one week before the Christmas holidays, which were originally planned to start after December 23, but will now begin on December 16.

“The worldwide semiconductor supply crisis, which affects the entire automotive industry, will cause us to idle the Martorell plant on December 17, 20, 21, 22 and 23,” the company said in a statement.

The production cut is due to the fact that demand for the SEAT and CUPRA brands has returned to pre-pandemic levels, the statement said. The company will also close next week, January 3rd, 4th and 7th, as January 5th and 6th are the weekend.

SEAT cut production several times throughout 2021, including a partial shutdown of the plant’s conveyors at the end of August. The Martorell plant assembled around 500,000 vehicles in 2019, before the pandemic began.

Automakers around the world have been forced to slash production this year as supply chain disruptions and skyrocketing demand for consumer electronics have led to an acute microchip shortage that is taking longer than expected to fix.

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