Nissan says its factory in Smyrna, Tennessee, which employs 6,700 people, will close for two weeks. It's the latest shutdown blamed on a semiconductor shortage that has hobbled auto production worldwide.
FILE - In this Feb. 8, 2012, file photo, vehicles are reflected on the logo of the Nissan Motors Co. at a showroom in Tokyo's Ginza shopping district. Nissan says its huge factory in Smyrna, Tennessee, will close for two weeks starting Monday, Aug. 16, 2021 due to computer chip shortages brought on by a coronavirus outbreak in Malaysia.
The shutdown is among the longest at any U.S. auto plant of this size since the semiconductor shortage, which has hobbled auto production worldwide, started to hit late last year. Analysts say the closure of the large Nissan factory for two weeks is a sign that the semiconductor shortage may not be coming to an end late this year as many auto executives had hoped.
The shortage and plant closures, coupled with strong consumer demand in the U.S., have caused shortages of new vehicles across the nation. That has driven up prices, and the shortage hasThe chip shortage is starting to improve, but the coronavirus delta variant is starting to cause problems at factories in the semiconductor supply chain, making matters worse, said Phil Amsrud, senior principal analyst for IHS Markit who studies the chip market.
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