On March 26th, NIO announced that it would temporarily suspend production for 5 working days due to the semiconductor shortage.
During NIO’s conference call in early March, Li Bin stated:
The impact of chips on the supply chain is significant, which does have some impact on our Q2. But we are still able to meet our normal life plans. It’s true that changes occur every day. The global automotive industry is still greatly affected by chips. Our team has been working on this since last year. We even have direct contact with chip companies to connect the entire chip supply chain. Indeed, the risk is still high for our Q2 volume, although it can currently meet our needs.
Li Bin also stated at the time that NIO’s full supply chain production capacity had reached 7,500 vehicles in January. Based on this calculation, the production capacity for 5 working days is approximately 1,250 vehicles. During the conference call, NIO’s CFO, Feng Wei, also stated that the company expects vehicle deliveries in the first quarter of 2021 to be between 20,000 and 20,500 vehicles. Therefore, the impact of the 5-day production suspension on the delivery volume is not significant.
🔗Source: NIO Inc. Announces Temporary Suspension of Production, NIO Q4 2020 and Full Year Financial Results Conference Call Transcript
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.