The shortfall in chips started last year when the pandemic disrupted manufacturing as well as the supply chains that carry chips around the world. Shortages were made worse over the winter by a fire at a chip-making plant and weather problems in Texas.
The practice of “just in time” manufacturing, in which companies count on the arrival of materials only as they are needed, made many automakers more vulnerable to the shortages since they intentionally kept little inventory on hand.
“We will continue to closely monitor supply chain conditions in an effort to minimize the impact to our team members,” Sands said in a statement Monday.
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The plant in West Point makes the Telluride and Sorento crossover utility vehicles as well as the K5 sedan. It has a capacity for producing 340,000 vehicles a year.