Shortage Of Chips Stings Auto Industry: Ford Factory Shuts Down In Chennai; No Salary For 10,000 GM Staff

Automobile manufacturers in the entire world is facing a shortage of chips (semiconductor), and the shortage has impacted the automobile industry quite badly, so much so that Ford India had to shut down its factory near Chennai.

Additionally, General Motors (GM), had filed an application to close down its manufacturing plant in Talegaon; but the application has now been rejected by the Government of Maharashtra.

Ford India Extends Shut Down of Chennai Factory Due To Shortage Of Chips

Ford India’s factory in Maraimalai Nagar near Chennai had already shut down for Pongal for three days on January 14, but now, the shut down has been extended by the company up to January 24.

All this is because of the shortage of the semiconductors

A spokesperson at Ford has confirmed the news saying, “The Chennai plant was supposed to open on January 18, Monday after the Pongal break, which has been extended for a week. Semiconductor (chip) shortage is a serious issue and the team is trying to address the supplies.”

He has also stated that this shortage will be impacting the Ford operations in India and production of the carmaker across Chennai and Sanand plants this entire quarter.

Industry sources have also confirmed that the semi conductor shortage and the impact of it will impact the production of Ford vehicles for both the domestic and export market by 50%. 

In December, Ford manufactured about 7000 vehicles and its cumulative production in April-December was just a bit under 65000 units.

General Motors’ Application To Close Down Factory Rejected By Maharashtra Government

The General Motors’ Employees Union had filed a petition before the Bombay High Court against the company’s decision to shut down its plant at Talegaon in Pune. However, news is that the closure application filed by the company has now been rejected by Maharashtra industry minister Dilip Walse-Patil.

The petition demanded that the Maharashtra government passes an order to either approve or reject the Closure Application filed by General Motors India.

As per the petition, after January 2020, the employees of the company were forced and coerced to accept a voluntary retirement scheme. However, the union stated that this wasn’t fair and equitable.

GM had also filed an application to the Maharashtra labor department, asking for permission to close its Talegaon factory.