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Mini Oxford plant suspends production over semiconductor chip shortage

Mini Oxford plant suspends production over semiconductor chip shortage
Mini Oxford plant suspends production over semiconductor chip shortage

Mini, the British automotive marque owned by the German carmaker BMW, has reportedly been forced to suspend production at its Oxford plant due to the ongoing global shortfall of semiconductor chips.

As per the parent organization, BMW Group, the Cowley factory was shut on Monday and will stay closed until Friday at the least.

The announcement comes after the company's production was halted for three days in April due to a supply-chain constraint.

Semiconductor makers all over the world have been battling for supplies.

Chips are essential in modern automobiles, as they enable features such as automatic emergency braking, touchscreen controls, fuel economy equipment, reversing cameras, as well as airbag deployment systems.

BMW stated that due to the global chip shortage, a problem faced by most of the automotive industry over the past year, Plant Oxford had to make certain short-term adjustments to its manufacturing schedule.

Plant Oxford, which is shutting down operations for five days, from Monday, February 21 to Friday, February 25, inclusive, stated that it is actively looking into the situation and are actively communicating with its suppliers and associates.

The plant employs approximately 3,500 people and manufactures about 5,000 automobiles every week.

Anneliese Dodds, Oxford East MP, stated in response to the revelation that she is pleased that BMW is working actively with the union to address this situation, and none of the staff members will have to go without their respective wages as a result.

The chip scarcity, supply chain delays, Covid-19 restrictions, and increasing raw material prices, have all had an impact on automakers around the world.

Toyota, Ford, General Motors, Nissan, BMW, Daimler, and Renault have all had to reduce output in recent months due to a lack of chips.

Jaguar Land Rover (JLR) warned in February that a shortage of semiconductors was limiting sales and that the shortage was likely to last the rest of the year.

Source credit: https://www.bbc.com/news/uk-england-oxfordshire-60491637

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.