Renault cancels night shifts in Valladolid factory due to microchip shortages

The company has indicated that further stoppages can’t be ruled out in September at its Castilla y León plant

Following a meeting of the ERTE Monitoring Commission, car manufacturing group Renault confirmed on Monday August 30 that it would be suspending its night shifts for much of the month of September at the Valladolid factory due to a supply shortage of semiconductor microchips on the market. Currently, the cancelled shifts affect September 2 and 3, as well as September 6 through 30, but the company has indicated that next week it may be forced to take the decision to also cancel some morning and afternoon shifts.

Semiconductors, usually just referred to as microchips, are used to control an electrical current and are present in practically every modern-day electronic device. In the automotive industry, these chips are used in everything from high-performance engines and autonomous driving aids to mobile phone connections and touch screens. The onset of the coronavirus pandemic sparked a global shortage in semiconductors, as chip production companies like Intel were shut down just when the demand for electronics skyrocketed with people working and studying from home.

The work stoppages in Castilla y Leon mainly affect the Valladolid Body and Assembly Factory, which will halt the afternoon and evening shifts this Thursday, while on Friday all three work rotations will be stopped. The night shift will then be completely halted on September 6 until the situation is reviewed at the end of the month. In the Palencia factory, business will continue as usual after September 9.

The move comes just over a month after Seat decided to close its car manufacturing factory in Barcelona for two days in July for the same reason. Renault originally placed its staff at both Valladolid and Palencia on ERTE (temporary employment suspension scheme) on April 16 due in large part to the semiconductor shortages, and the company had indicated that disruptions to work schedules would continue until the end of September.

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Source: Murcia Today