CNH Industrial will temporarily close several of its European agricultural, commercial vehicle and powertrain manufacturing facilities in response to ongoing procurement disruptions, which include shortages of core components, especially semiconductors.
The company said it constantly reviews its production schedules in response to this highly dynamic environment and plans to shut the plants for no longer than eight working days, all in October.
The company further added that it remains committed to optimizing its manufacturing operations to meet continued strong demand while serving its dealers and customers.
The shortage of chips is linked to a downturn in global output due to plant closures during the pandemic coupled with an increased demand for consumer electronics. Although chip producers are reported to have added capacity, media reports suggest the shortage will last well into 2022.
Source: Diesel Progress