Renault To Factories in Brazil for The Third Time in 2021

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Renault decided to grant collective vacations to four vehicle production units in São José dos Pinhais, in the metropolitan region of Curitiba, as of this Monday (2nd). The decision was justified by the lack of chips in the international market. This is the third shutdown of the assembly plants only in 2021.

Duration of downtime varies according to each work area. Employees of Curitiba Veículos Utilities (CVU), which produces Master vans, will have a vacation of just 5 days, with return scheduled for August 9th. At Curitiba Veículos de Passeio (CVP), responsible for the production of Duster, Kwid and Stepway, employees return to work on the 12th.

Each automaker’s vehicle requires 200 to 600 semiconductors to control all of the car’s electronic components. The chips are made in Asia, especially China and Taiwan.

The pandemic has damaged the fragile balance of the global chip supply chain, both due to the shutdown of industries and the increase in the consumption of electronics during social isolation, causing a general shortage of the product.

Chip shortage

The lack of semiconductors has frequently caused the interruption of automobile production in Brazil and in the world. In July, Volkswagen announced collective vacations for workers at its factories in São Bernardo do Campo and Taubaté. Chevrolet, Fiat, Hyundai, Toyota, Nissan, Scania, Mercedes-Benz and Honda have also announced similar measures in the country.

In the first half of 2021, the European Association of Automobile Suppliers (Clepa) estimates that at least 500,000 cars were no longer produced due to a lack of components worldwide. But it’s not just the auto industry that is being hit by global shortages.

In July, the lack of chips caused delays or interruptions in 40% of electronics factories in Brazil, according to a survey by the Brazilian Electrical and Electronic Industry Association (Abinee). The absence of this input has harmed the manufacture of televisions, home appliances, and even cell phones, video games and computers.

According to estimates, global chip production is not expected to normalize until mid-2022.

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