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VW’s SEAT adds output curbs in December as chip shortage lingers -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: On October 31st 2018, workers assemble cars on the SEAT vehicle factory’s assembly line in Martorell. REUTERS/Albert Gea

BARCELONA (Reuters). Volkswagen (DE)’s Spanish division SEAT announced Monday that it had increased its output at the main assembly plant near Barcelona in December. This was due to global semiconductor supply disruptions. It also closed its factory for five consecutive days.

SEAT has decided that it will extend by one week the production holiday before Christmas. Originally, this was to begin after Dec. 23, but SEAT now plans to finish after Dec. 16.

According to a company statement, Monday’s “crisis of global semiconductor supply” will lead Martorell Plant to close on December 17, 20, 21, 22, and 23, according to the company.

According to the statement, production restrictions are necessary because demand for SEAT and CUPRA brand products is returning to pre-pandemic levels.

Additionally, the company will close for business on January 3, 4, 7 and 7. Jan. 5-6 and Jan. 6 are also holidays.

SEAT has reduced its production multiple times throughout 2021. This includes a partial idle in August.

Before the outbreak, the Martorell plant had assembled approximately 500,000 vehicles.

As a result of supply chain disruptions, booming consumer electronics demand and an acute shortage in microchips this year, carmakers all over the globe have had to reduce production. This has caused a severe shortage that is taking longer to resolve than anticipated.

These chips are a vital component of cars, powering everything from fuel injection and entertainment systems.

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