Due to a combination of semiconductor chip 'bottlenecks' and the ongoing Ukraine crisis, MINI's Cowley facility in Oxfordshire has temporarily closed. Mini has stated that it is 'assessing the situation and establishing measures to secure production as quickly as possible'. The shutdown is anticipated to remain until Friday, March 18 as reported by Oxford Mail. The brand previously stated that supply for semiconductor components will continue to be difficult and that it cannot rule out the possibility that this may affect sales for the rest of the year.
A Mini spokesperson told Oxford Mail, “The Ukraine war has a considerable impact on the country’s automotive supply industry. Combined with the ongoing semiconductor bottlenecks, these supply limitations mean further adjustments to the Plant Oxford production schedule are required".
The facility was impacted by the same semiconductor shortages in April last year, and production was halted for three days. The Cowley facility now employs 3,800 people, who will be affected by the closure this week, but their pay will not be affected. The spokesman guaranteed that not a single associate would go without payment as a result of this temporary stand down, saying that the company has had talks with the trade union on how this was to be managed.
The factory produces both fuel and electric variants of the Mini Hatch, as well as the Clubman estate. The worldwide supply chain issue of semiconductor chip shortages has been affecting manufacturers all around the world. Most modern automotive equipment, like touchscreen infotainment systems, reversing cameras, and airbags, contain the semiconductor.
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Supply chain problems caused by the current Covid-19 pandemic have caused scarcity. Due to tight limitations and a lack of parts, manufacturers throughout the world have been forced to temporarily close production facilities, resulting in a massive backlog for new cars. There are also chances of worsening of the electronic chips’ crisis since some crucial raw materials come from Ukraine based suppliers.
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