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Business

Ford slashes automobile manufacturing at six vegetation in North America as a consequence of chip scarcity

Ford Motor is significantly reducing production at six plants in North America due to the ongoing global shortage of semiconductor chips, including facilities that make highly profitable pick-ups.

Measures vary by plant, but range from overtime cancellations to facilities closed for up to three weeks from April to June. Or a combination of both.

The affected plants are located in Illinois, Ohio, Kentucky, Michigan, Missouri, and Ontario, Canada. They manufacture a wide range of products – from F-150 pickups and vans to Ford Explorer SUVs and Ford Escape Crossovers.

Production of the F-150 in Dearborn, Michigan, will cease in the weeks of April 5th through April 12th, the company said. Ford is also canceling overtime at the factory in the weeks of April 26, May 10, May 31, and June 21. Another facility in Missouri that will manufacture the full-size F-150 will be shut down for a week starting Monday. Overtime at the plant will be suspended for eight weeks through most of June.

Semiconductors are key components that are used, among other things, in the infotainment, power steering and braking systems of new vehicles. With several plants closed due to Covid last year, suppliers turned semiconductors from automakers to other industries, creating a shortage after consumer demand fell more than expected.

Ford previously expected the shortage could cut its profits by $ 1 billion to $ 2.5 billion in 2021. Without releasing any new guidance, the company said it would “provide an update on the financial implications of semiconductor shortages” when it reports its first quarter earnings on April 28th.

This is a developing story. Check back soon for more updates.

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Business

Clorox increasing manufacturing of disinfectant wipes amid Covid: CEO Linda Rendle

Linda Rendle, CEO of Clorox, told CNBC on Friday that the company had further increased the production of its disinfectant wipes to meet the increased demand from the global Covid crisis as early as the second year.

“We made about 1 million canisters of wipes in the last quarter and brought them to stores every day,” said Rendle at Closing Bell. “This quarter we have up to 1.5 million canisters per day and will continue to expand these when we bring new capacities online in the next few months.”

Consumers stocked up on various cleaning products during the pandemic, which, despite efforts to ramp up production, led to supply bottlenecks for items such as Clorox wipes. In December, Clorox chief operating officer Eric Reynolds told NBC News that the limited availability may last until “mid-2021”.

Clorox has raised its full-year revenue forecast following its quarterly report earlier this month. The company now expects revenue to grow between 10% and 13% in fiscal 2021, up from previous projections of 5% to 9% growth.

The number of coronavirus cases has been falling recently and Covid vaccines are becoming more and more accessible, leading to optimism that the acute phase of the pandemic will soon be over. For Clorox, Rendle said the rosier sales picture was partly due to a shift in people’s view of sanitation as a result of the health crisis.

“This is true here in the US, but really all over the world. People focus on cleaning and more on safety and well-being, not just on work,” said Rendle, who took over the management of the household products manufacturer in September. She had served as President of Clorox.

Before the coronavirus pandemic, a trend in the detergent industry was a quest for more sustainability and transparency. To this end, Clorox launched compostable cleaning wipes in January 2020. However, according to Rendle, production had to be halted due to Covid, as products that could be manufactured faster were given a higher priority.

“We will be bringing these compostable wipes back and we expect them to be a large part of our portfolio as we move forward,” she said.

Clorox shares fell 1.37% to $ 187.05 apiece on Friday. Based in Oakland, Calif., Its shares rose 13.5% over the past 12 months.

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Business

Shell Says Its Oil Manufacturing Has Peaked and Is Prone to Decline

Royal Dutch Shell made the boldest statement among its peers on Thursday about the decline of the oil age, saying its production peaked in 2019 and is now expected to gradually decline.

Shell’s “total oil production peaked in 2019” and will now decrease by 1 to 2 percent annually, the company said in a statement.

The announcement, part of the fine print of a presentation on future clean energy goals, marks a turning point for one of the world’s leading oil companies in the 19th century. And it underscores a point that the company’s CEO Ben van Beurden has made for years: To stay in business, Shell needs to be seen as part of the solution, not the cause of climate change.

As Europe’s largest oil and gas producer, Shell was skeptical about how willing or able it would be to break away from its roots. Indeed, like other oil chiefs, Mr van Beurden is trying to draw the fine line between promoting green commitments and continuing to promote the oil and gas units that produce most of Shell’s money.

“Even if the world is decarbonised, it will still need oil and gas for decades,” said van Beurden on Thursday at a presentation of the company’s new strategy. Oil and gas, he said, “will help fund Shell’s transformation.”

The momentum for change is increasing significantly. In Europe in particular, the pandemic is proving to be a catalyst for more action by energy companies and others.

Demand for oil has picked up somewhat since the collapse last spring, and oil futures returned to pre-pandemic levels on Monday. However, Shell and other companies clearly understand that oil is no longer the mainstay they can count on and are therefore investing more in renewable energy sources such as wind, solar and hydrogen.

European oil companies are all moving in roughly the same direction with regard to fossil fuel production, with some different approaches. BP said last year that it would likely cut oil and gas production by 40 percent by 2030. Last year the company’s production declined 10 percent, largely due to the sale of oil fields.

Shell said Thursday that its carbon emissions would likely have peaked in 2018 and that it would step up its previously announced efforts to reach zero net carbon emissions by 2050 with tougher intermediate targets.

The company also stressed that its emissions reduction targets would include those of the products it sold to customers. That said, in attempting to reduce net carbon emissions to zero, Shell will consider not only the emissions generated in its business, but also the gases emitted from the exhaust pipes of cars using fuels marketed by Shell. Burning and other uses of fuel that shell sold Make up 90 percent of the company’s emissions.

The announcement received praise from activist investors but disappointed some environmentalists who want a faster transformation.

Adam Matthews, director of ethics and engagement for the Church of England Pensions Board, said Shell’s plans to meet its 2050 goals are the “most comprehensive” in the industry. “There’s no room for maneuver,” said Matthews, who encouraged Shell to cut emissions on behalf of a group of institutional investors called Climate Action 100+.

Shell takes a slightly different approach than its Paris-based rivals BP and Total, who recently looked into renewable energy projects like wind and solar at prices that are sometimes viewed as high.

Instead, Shell wants to help customers cope with the complexities of reducing their own carbon emissions. In retail, this could be because they plug their electric vehicles into Shell’s growing network of 60,000 charging stations, or they fill vehicles with hydrogen, a clean fuel that Shell has been promoting for years and is becoming increasingly popular.

Shell also wants to leverage its large energy trading unit and other capabilities to provide businesses with clean electricity and other low-carbon fuels, and to help them with other needs. For example, van Beurden said he could foresee Shell’s growing know-how in capturing emissions and storing gases underground – so-called carbon capture technology – which would become a service that Shell could offer. They’re ready to put money into clean power generation like wind farms, but Shell executives say they don’t think owning renewable assets will necessarily be a big money maker.

“We believe that developing the right products and solutions for customers has more value than just generating green electricity,” said van Beurden when he called reporters on Thursday.

According to analysts, Shell’s relatively cautious approach to renewable investments came as no surprise, as the stock prices of companies that have moved into these areas recently seem not to benefit. Shell said it plans to invest $ 2 to 3 billion a year in renewables like wind and solar, as well as clean power plants, a small portion of the capital investment of up to $ 22 billion.

“Despite the green spin, the substance would suggest a more cautious approach to renewable energy,” said Stuart Joyner, an analyst at Redburn, a market research firm.

Although Shell says oil production has peaked, natural gas flows will keep all fossil fuel production flat. The company views liquefied natural gas, a marine fuel, as a vital business in which it is a global leader and as a transition fuel between petroleum and renewables.

Shell said Thursday that it plans to spend $ 8 billion on oil and gas development and $ 4 billion on its natural gas facility annually in the near future.

The prospect that Europe’s largest oil company will continue to pump fossil fuels for a long time drew fire from some environmentalists.

Greenpeace UK said in a statement that Shell’s strategy could not be successful or “taken seriously” without specific commitments to cut production. Greenpeace also called Shell’s plans to offset emissions through the establishment and protection of forests and wetlands “delusional”.

Mr Matthews of the Church of England said the increasingly detailed plans of European oil companies to reduce emissions were a huge step forward from three years ago, when such discussions were barely going on.

“Things have moved a lot during that time,” he said.

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Business

Ford F-150 manufacturing reduce resulting from semiconductor chip scarcity

Ford began resuming vehicle production in the U.S. on May 18, 2020 with new coronavirus safety protocols like health assessments, personal protective equipment, and changes to facilities to increase social distancing.

ford

DETROIT – Ford Motor is significantly reducing production of its highly profitable F-150 pickup trucks due to a persistent shortage of semiconductor chips in the global automotive industry.

The automaker announced Thursday that its Dearborn, Michigan truck plant will decrease from three to one shift for one week starting Monday, while truck production at its Kansas City, Missouri assembly plant will decrease from three to two shifts. Ford spokeswoman Kelli Felker said both plants are expected to return in three shifts by the week of February 15.

“We are working closely with suppliers to address potential production constraints associated with global semiconductor shortages and to prioritize key vehicle lines for production and make the most of our semiconductor allocation,” she said in a statement sent via email.

Ford shares appeared unaffected by the cuts, rising about 3% during intraday trading late Thursday morning. The automaker is expected to announce its fourth quarter results and forecast for 2021 after the market closed on Thursday.

Automakers and suppliers warned of a semiconductor shortage late last year after vehicle demand rose faster than expected following a two-month shutdown of production facilities due to the coronavirus pandemic.

Semiconductors are extremely important components of new vehicles in areas that range from infotainment systems to more traditional parts like power steering. They are also used in consumer electronics.

Ford’s confirmed plans come a day after General Motors announced it would cease production at four assembly plants in Fairfax, Kansas, next week. Ingersoll, Ontario; and San Luis Potosi, Mexico. GM will also operate a half capacity plant in South Korea this week.

Ford and other automakers – from Nissan Motor to Volkswagen – previously stopped vehicle production due to the shortage of chips.

Kumar Galhotra, Ford President for the US and International Markets, described the chip shortage earlier this week as a “very dynamic situation”. He said the company had been working with its suppliers to reduce the impact on its plants and resolve the issue as soon as possible.

“It’s changing all the time, but we believe we will look into it for at least the first half of this year,” he told CNBC.

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World News

Tesla job openings for Semi truck manufacturing traces in Nevada

Elon Musk, Tesla CEO, shows the Tesla Semi as he introduces the company’s new electric tractor-trailer during a presentation on November 16, 2017 in Hawthorne, California, United States.

Alexandria saga | Reuters

Current vacancies show that Tesla is pushing ahead with its lengthy plans for its electric semi-truck, an initiative first unveiled in 2017.

Three current vacancies require employees to work on “semi-truck production lines” in Sparks, Nevada. Tesla is already producing batteries for its electric vehicles there in cooperation with Panasonic.

Tesla announced the Semi in November 2017, at the time it said it would deliver the trucks to customers in about two years. At that point, the company announced that it would sell a 300-mile version of the Semi for $ 150,000 and a 500-mile version for $ 180,000, and that the trucks with no cargo would go from 0 to 60 in five seconds Driving 0-60 miles per hour in 20 seconds with a load of 80,000 pounds.

After Tesla took reservations for the trucks from companies like Anheuser-Busch, DHL Group, PepsiCo, Pride Group and Walmart, Tesla announced delays in semi-production during a earnings call for the third quarter of 2019 and again in April 2020.

In June 2020, CEO Elon Musk sent an email to all Tesla employees requesting “mass production” of the Semi.

“It is time to do everything we can to get the Tesla Semi into mass production. So far it has only been produced in limited numbers, which has allowed us to improve many aspects of the design.” Musk also said in that memo, “Production of the battery and powertrain would take place in Giga Nevada, with most of the other work likely to take place in other states.”

However, in the company’s third quarter 2020 financial filing, Tesla mentioned its semi-initiative only twice, saying it was “in development,” and US locations for semi-production have not yet been determined.

In an interview at the European Battery Conference in November, Musk recently bragged that Tesla was aiming for a semi that could go further than originally promised on a single charge, saying, “You could use the range for a long range.” Trucks, easy up to 800 kilometers, and over time we see a way to achieve a range of 1,000 kilometers with a heavy truck. “

The company has some prototype semi-trucks that have been in operation for over a year. However, Musk has not disclosed when full production of the semi or longer range batteries could begin.

Today Tesla is taking refundable reservations of $ 20,000 to order a semi. (The initial reservation required was $ 5,000.) Base price for a 300 mile range version is $ 150,000 and for a 500 mile range it is $ 180,000. Potential customers can also order a Founders Series Semi for $ 200,000.

Meanwhile, Daimler is in small-scale production in the US with its heavy eCascadia electric vehicles, and Quebec-based Lion Electric is planning a SPAC, a new US plant, and has signed a contract to supply up to 2,500 battery-powered electric trucks to Amazon in the next five years.

Investors are likely to push Tesla for details on the status of its semi-program when the fourth quarter 2020 earnings statement is slated for Wednesday.

Tesla did not immediately respond to a request for comment.

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Health

Johnson & Johnson Expects Covid Vaccine Outcomes Quickly however Lags in Manufacturing

Johnson & Johnson expects to release critical results from its Covid-19 vaccine trial in as little as two weeks — a potential boon in the effort to protect Americans from the coronavirus — but most likely won’t be able to provide as many doses this spring as it promised the federal government because of unanticipated manufacturing delays.

If the vaccine can strongly protect people against Covid-19, as some outside scientists expect, it would offer big advantages over the two vaccines authorized in the United States. Unlike those products, which require two doses, Johnson & Johnson’s could need just one, greatly simplifying logistics for local health departments and clinics struggling to get shots in arms. What’s more, its vaccine can stay stable in a refrigerator for months, whereas the others have to be frozen.

But the encouraging prospect of a third effective vaccine is tempered by apparent lags in the company’s production. In the company’s $1 billion contract signed with the federal government in August, Johnson & Johnson pledged to have 12 million doses of its vaccine ready by the end of February, ramping up to a total of 100 million doses by the end of June.

Federal officials have been told that the company has fallen as much as two months behind the original production schedule and won’t catch up until the end of April, when it was supposed to have delivered more than 60 million doses, according to two people familiar with the situation who were not authorized to discuss it publicly. Carlo de Notaristefani, lead manufacturing adviser for Operation Warp Speed, the federal vaccine development program, acknowledged a delay, but said the company might be able to catch up with initial production goals by March.

“I agree there was a problem,” Dr. de Notaristefani said. But he added, “Manufacturing of pharmaceuticals is not a black box where you turn the key and start counting.”

Any delay could be critical because the federal government has secured only enough vaccine doses to inoculate 200 million of the roughly 260 million eligible adults in the first half of this year. With the nation in the grip of its largest surge of the coronavirus to date and the death toll escalating to as high as 4,000 a day, Americans desperate to be vaccinated are lining the sidewalks outside vaccination centers.

Fears about the virus have only escalated with the scientific discovery last month that the country has been seeded with a new, highly contagious variant. On Tuesday, the Trump administration announced it would no longer hold back vaccine stocks for second doses in order to get more people at least partly vaccinated more quickly.

Dr. Paul Stoffels, Johnson & Johnson’s chief scientific officer, said he expected to see clinical trial data showing whether his company’s vaccine is safe and effective in late January or early February. But he declined to provide details about the company’s production capacity.

“We are not ready to release the numbers month by month at the moment, as we are in the discussion with the F.D.A.,” he said.

If the data is positive and the Food and Drug Administration authorizes the vaccine for emergency use, he added, “hopefully somewhere in March we’ll be able to contribute” to the nation’s vaccination drive.

That Johnson & Johnson’s timetable has slipped is not unusual given the frantic pace of vaccine development amid the worst pandemic in a century. But the delay also highlights the unrealistic promises of Operation Warp Speed.

The premise of the program was that the federal government would front the costs of development and manufacturing so that vaccine makers could mass-produce doses even before the vaccines were proved to work. Moncef Slaoui, chief scientific adviser for Warp Speed, said in December that Johnson & Johnson’s vaccine would be a “game changer” in the pandemic.

But at a Tuesday news conference, Dr. Slaoui said that instead of 12 million doses envisioned in the contract by the end of February, the company was likely to have in the “single-digit” millions. He also said the company was “trying to make that number get as close to a double-digit number as possible, and then a larger number in March and a much larger number in April.” Another person familiar with the company’s progress said it was poised to deliver only perhaps three million or four million doses of its vaccine by the end of next month.

In a statement, a Johnson & Johnson spokesman said, “We are confident we can meet our contractual obligations to supply our vaccine candidate to the U.S. government.”

Dr. de Notaristefani, Operation Warp Speed’s manufacturing chief, said the government’s contracts with vaccine makers were written at a time of great uncertainty, with the understanding that unforeseen obstacles could throw off the timetables. “Numbers are never cast in stone when you start a new process,” he said, adding that the company had to transfer its manufacturing from the Netherlands to a plant in Baltimore. “I really think that technically they couldn’t do it earlier.”

Dr. Marcus Plescia, the chief medical officer for the Association of State and Territorial Health Officials, said that state health officials were clearly excited about Johnson & Johnson’s one-dose vaccine.

Covid-19 Vaccines ›

Answers to Your Vaccine Questions

If I live in the U.S., when can I get the vaccine?

While the exact order of vaccine recipients may vary by state, most will likely put medical workers and residents of long-term care facilities first. If you want to understand how this decision is getting made, this article will help.

When can I return to normal life after being vaccinated?

Life will return to normal only when society as a whole gains enough protection against the coronavirus. Once countries authorize a vaccine, they’ll only be able to vaccinate a few percent of their citizens at most in the first couple months. The unvaccinated majority will still remain vulnerable to getting infected. A growing number of coronavirus vaccines are showing robust protection against becoming sick. But it’s also possible for people to spread the virus without even knowing they’re infected because they experience only mild symptoms or none at all. Scientists don’t yet know if the vaccines also block the transmission of the coronavirus. So for the time being, even vaccinated people will need to wear masks, avoid indoor crowds, and so on. Once enough people get vaccinated, it will become very difficult for the coronavirus to find vulnerable people to infect. Depending on how quickly we as a society achieve that goal, life might start approaching something like normal by the fall 2021.

If I’ve been vaccinated, do I still need to wear a mask?

Yes, but not forever. The two vaccines that will potentially get authorized this month clearly protect people from getting sick with Covid-19. But the clinical trials that delivered these results were not designed to determine whether vaccinated people could still spread the coronavirus without developing symptoms. That remains a possibility. We know that people who are naturally infected by the coronavirus can spread it while they’re not experiencing any cough or other symptoms. Researchers will be intensely studying this question as the vaccines roll out. In the meantime, even vaccinated people will need to think of themselves as possible spreaders.

Will it hurt? What are the side effects?

The Pfizer and BioNTech vaccine is delivered as a shot in the arm, like other typical vaccines. The injection won’t be any different from ones you’ve gotten before. Tens of thousands of people have already received the vaccines, and none of them have reported any serious health problems. But some of them have felt short-lived discomfort, including aches and flu-like symptoms that typically last a day. It’s possible that people may need to plan to take a day off work or school after the second shot. While these experiences aren’t pleasant, they are a good sign: they are the result of your own immune system encountering the vaccine and mounting a potent response that will provide long-lasting immunity.

Will mRNA vaccines change my genes?

No. The vaccines from Moderna and Pfizer use a genetic molecule to prime the immune system. That molecule, known as mRNA, is eventually destroyed by the body. The mRNA is packaged in an oily bubble that can fuse to a cell, allowing the molecule to slip in. The cell uses the mRNA to make proteins from the coronavirus, which can stimulate the immune system. At any moment, each of our cells may contain hundreds of thousands of mRNA molecules, which they produce in order to make proteins of their own. Once those proteins are made, our cells then shred the mRNA with special enzymes. The mRNA molecules our cells make can only survive a matter of minutes. The mRNA in vaccines is engineered to withstand the cell’s enzymes a bit longer, so that the cells can make extra virus proteins and prompt a stronger immune response. But the mRNA can only last for a few days at most before they are destroyed.

“You can get it and you’re done,” he said. “Everybody is eager to have it out there. It has a lot of potential.”

But even if Johnson & Johnson’s vaccine pans out, Dr. Plescia said, it won’t be enough. He predicted that state health departments would need a total of four vaccines in the next six months if they hope to reach their goals of offering a vaccine to every American who wants one.

“Or else the public is going to get very frustrated, because they’re ready for it to be opened up and there isn’t adequate supply to do that,” Dr. Plescia said.

Johnson & Johnson is by no means alone in its manufacturing delays. Dr. Albert Bourla, Pfizer’s chief executive, told investors last fall that his company had agreed to deliver 40 million doses of its vaccine to the federal government in 2020, assuming it proved successful in clinical trials. In the end, the company had only half that many ready to ship.

No one — including company executives — knows whether Johnson & Johnson’s vaccine will work. But Lynda Coughlin, a virologist at the University of Maryland School of Medicine who is not involved in the trial, said that the design of the vaccine and the results from early trials made her optimistic.

“Hopefully the results from Johnson & Johnson are just really going to knock it out of the park,” she said.

Johnson & Johnson’s Covid vaccine is fundamentally different from the authorized vaccines from Moderna and Pfizer-BioNTech. Those two consist of genetic molecules encased in oily bubbles. Johnson & Johnson built its vaccine from a virus that causes common colds, known as an adenovirus.

Testing the vaccine on monkeys, the researchers found that a single shot was enough to protect the animals from infection. When they tried out different formulations of the vaccine in early clinical trials, they were pleased to see that the vaccine prompted a strong antibody response with a single dose.

On Wednesday, Johnson & Johnson researchers and their colleagues published the full details of these early clinical trials in the New England Journal of Medicine. They reported that when they checked the blood of volunteers 71 days after receiving a single dose, their levels of coronavirus antibodies were still high. In some cases they were still increasing.

As results of the early clinical trials emerged over the summer, the company had to make a high-stakes decision: proceed with a clinical trial of two doses, which had the most likelihood of success, or try one with a single dose, which would be far more useful for getting shots to the masses — if it worked. The company decided to roll the dice with a single-shot trial.

“We know from vaccination campaigns that the simpler the logistics, the more successful the program,” said Dr. Dan Barouch, a virologist at Beth Israel Deaconess Medical Center who pioneered adenovirus vaccines in the early 2000s and collaborated with Johnson & Johnson researchers on the trial.

If many people began developing immunity from a single-shot dose, it might become harder for the virus to move from person to person, bringing down the high rates of new cases and easing the burden of the pandemic.

“A vaccine that is one dose would have a tremendous, tremendous public health impact, of course for low-income countries, but also in high-income countries,” said Ruth Faden, a professor of biomedical ethics at Johns Hopkins University.

While other vaccine developers moved quickly into late-stage trials, Johnson & Johnson deliberately moved more slowly so it could focus on ramping up manufacturing of its vaccine. At a facility in the Netherlands, researchers grew cells in which their adenoviruses could multiply. Adjusting the chemistry in giant vats, the scientists found a recipe for producing the vaccine at a fast, reliable rate.

Johnson & Johnson also began working early with other companies to prepare to manufacture the vaccine across the world. In April, it announced a partnership with the Maryland-based Emergent BioSolutions to manufacture the vaccine for the United States. Researchers from Johnson & Johnson began visiting Emergent BioSolutions starting that month to help it prepare for producing the adenoviruses.

“It was much more than a paper exercise: ‘Here’s the recipe, follow this,’” said Remo Colarusso, vice president at Janssen Supply Chain. “This is complex manufacturing.”

By the fall, Emergent BioSolutions was growing cells that were spewing out new adenoviruses. When Johnson & Johnson announced the start of its final Phase 3 trial, executives began making aggressive projections. “We are now committed to make more than one billion doses during 2021, and more after that,” Dr. Stoffels said at a September news conference.

The company then secured more deals to provide the vaccine to countries around the world. In 2021, Johnson & Johnson has promised to supply 200 million doses to Covax, an international partnership seeking to distribute coronavirus vaccines to nations that would not otherwise be able to afford them. It will supply another 300 million to Covax in 2022.

Soon after Johnson & Johnson started its trial, cases surged around the world. All the Phase 3 clinical trials of Covid vaccines accelerated because trials end only after a specified number of volunteers — from both the placebo and vaccinated groups — get sick. In November, the Pfizer-BioNTech and Moderna vaccine trials both delivered impressive results, with efficacy rates around 95 percent.

The F.D.A. authorized both vaccines for the United States, and other countries soon followed suit. But these two vaccines had some major shortcomings that soon became impossible to ignore. Both vaccines have to be kept in a deep freeze to prevent them from degrading. Once they reach a hospital or clinic, they have to be used before they spoil. In New York City and elsewhere, unused vaccines have ended up in the trash.

Once data collection is complete at the end of January or early February, an advisory board will review the data and report its analysis on safety and efficacy to Johnson & Johnson. F.D.A. regulators are already evaluating manufacturing data weeks ahead of when Johnson & Johnson is expected to apply for emergency authorization. Hiccups as small as mold in part of a facility could spur further delays.

Katie Thomas contributed reporting.

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Business

Semiconductor scarcity causes Ford and Nissan to chop automobile manufacturing

A Ford Escape Sport Utility Vehicle (SUV) undergoes a final inspection during production at the Ford Motor Co. assembly plant in Louisville, Kentucky, United States on Tuesday, April 28, 2015.

Luke Sharrett | Bloomberg | Getty Images

Ford Motor and Nissan Motor on Friday confirmed they were reducing vehicle production at plants in the US and Japan due to a semiconductor shortage, indicating growing concerns in the global auto industry in 2021.

Ford will shut down an SUV plant in Kentucky next week while Nissan is cutting production at a plant in Japan. Both companies said they are working closely with suppliers to resolve the situation and monitor for additional impacts.

Automakers and suppliers warned of a semiconductor shortage late last year after vehicle demand rose faster than expected after a two-month shutdown of production facilities due to the coronavirus pandemic.

Semiconductors are extremely important components of new vehicles for everything from infotainment systems to other more traditional parts like power steering. They are also easily used in consumer electronics.

German automaker Volkswagen announced last month it had adjusted production at plants in China, North America and Europe due to a lack of semiconductor shipments, according to Reuters. America’s largest automaker, General Motors, has not had to cut production, but the company is closely monitoring the situation, spokesman David Barnas said.

“We are aware of increased demand for semiconductor microchips as the auto industry continues to recover around the world,” he said in a statement sent via email. “Our supply chain organization works closely with our supply base to find solutions to our suppliers’ semiconductor needs and to reduce the impact on GM production.”

Ford’s affected plant, the Louisville Assembly Plant, builds the Ford Escape and Lincoln Corsair SUVs and employs around 3,900 hourly workers. According to Ford spokeswoman Kelli Felker, due to the shortage, it will be postponed to another planned one-week shutdown later in the year due to the shortage.

“We are working closely with suppliers to address potential production restrictions related to the global semiconductor shortage,” she said in a statement sent via email.

The affected Nissan plant, the Japanese Oppama plant, is building the Note, a small car that is not sold in the United States. Lloryn Love-Carter, a Nissan spokeswoman in the US, said the company’s domestic production was not affected by the semiconductor shortage.

“We are working closely with our supplier partners to monitor the situation and assess the potential impact on our operations in North America,” she said in a statement sent via email.

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Business

Moderna will increase minimal 2021 Covid vaccine manufacturing by 20% to 600 million doses

A health worker holds a Moderna COVID-19 vaccine bottle on the first day Orange County residents 65 and older can be vaccinated on December 29, 2020 at a drive through at the Orange County Convention Center in Orlando, Florida.

Paul Hennessy | NurPhoto | Getty Images

Moderna is increasing its Covid-19 vaccine production this year, increasing the expected minimum dose by 20% to 600 million, the company said on Monday.

The company says it is working to produce up to 1 billion doses of its Covid vaccine this year. The U.S. is well on its way to securing 100 million shots of Moderna’s vaccine by the end of March and an additional 100 million by June, the Massachusetts-based company said in a statement.

The U.S. Food and Drug Administration granted Moderna’s emergency coronavirus vaccine approval to anyone age 18 and older in the U.S. in December and started the drug’s first launch.

The federal government has agreed to buy 200 million doses of Moderna’s vaccine, with an option to secure an additional 300 million, the company said.

Moderna’s Covid-19 vaccine, which uses the new mRNA technology and requires two doses four weeks apart, has also been approved in Canada for people aged 18 and over. The company has agreed to supply this country with 40 million doses of its vaccine, with the option to provide an additional 16 million.

“Our effectiveness in delivering early supplies to the US and Canadian governments, as well as our ability to increase baseline production estimates for 2021, are both signals that our increase in mRNA vaccine production is a success,” said Juan Andres, director made a statement to Moderna’s technical department.

The U.S. government, under the Trump administration’s Operation Warp Speed, said it would distribute close to 6 million doses of Moderna’s vaccine in an emergency once FDA approved.

The introduction of the vaccine in the nation has been slower than originally planned. So far, the US has only distributed more than 13 million doses of vaccine, but given only 4.2 million “shots in the arms,” ​​according to data from the US Centers for Disease Control and Prevention, last updated on Saturday. By the end of December, officials wanted to vaccinate 20 million people with Pfizers and Moderna’s two-dose vaccines against Covid-19.

Minister of Health and Human Services Alex Azar defended the operation’s vaccine distribution Monday on ABC’s Good Morning America. He said there was a delay in getting the cans first made available, ordered by the states, and then delivered, all of which was slowed down by the holidays.

However, the US has seen a “rapid uptake” of vaccines in the past few days, Azar said.

“We said our goal is to actually have 20 million first doses available by December. Those are available,” said Azar. It is unclear what Azar meant when he said the cans were “available” as only 13 million were distributed in the US on Saturday morning.

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World News

Tesla TSLA This autumn 2020 car manufacturing and deliveries report

Tesla said on Saturday that it delivered 180,570 electric vehicles in the fourth quarter, beating the previous record and Wall Street expectations. The electric car maker produced 179,757 Vehicles in total.

For the year, Tesla delivered 499,550 vehicles in 2020, slightly missing the latest forecast of 500,000 vehicles.

At an annual general meeting earlier this year, CEO Elon Musk announced to shareholders that he expects deliveries to reach an implicit range between 477,750 and 514,500 cars by 2020 despite the effects of the coronavirus pandemic.

The fourth quarter numbers set a new record for Musk’s auto business, which hit its best-ever level in the third quarter of 2020 with deliveries of 139,300.

According to a consensus among analysts polled by FactSet, Wall Street expects Tesla to report 174,000 vehicle deliveries in the last three months in the fourth quarter. The estimates ranged from 151,000 at the low end to 184,000 at the high end and included projections released between October and mid-December.

In the fourth quarter, Tesla delivered 161,650 Model 3 and Y vehicles and produced 163,660 such vehicles. The automaker also delivered 18,920 S and X models and produced 16,097 of them.

For the year, Tesla shipped 442,511 Model 3 and Y vehicles while 454,932 vehicles were produced. It delivered 57,039 Model S and X vehicles, while 54,805 such vehicles were produced.

In its quarterly reports, Tesla does not split the delivery and production numbers by region. Tesla is also combining delivery numbers for its older Model S and Model X electric cars, as well as newer, more popular Model 3 and Model Y vehicles.

However, Tesla observers can get some understanding of these segments from reports on light vehicle production published by the U.S. National Highway Traffic Safety Administration (NHTSA).

Automakers are required to report to NHTSA the number of vehicles they have made for sale in the U.S. per quarter. Production numbers refer to the make, model, model year, and powertrain of a particular vehicle that each automaker produces for the US market through the end of each quarter.

According to these reports, analyzed by CNBC, Tesla manufactured 66,175 of its 2020 Model 3 electric sedans and 46,773 of its 2020 Model Y crossover SUVs for the domestic US market alone in the first nine months of 2020.

By the third quarter of the year, Tesla was manufacturing more US models for 2020 than Model 3 for US drivers for 2020. Tesla began producing its crossover SUV for Model Y in large numbers for 2020 in the first quarter of 2020.

According to reports from NHTSA Light Vehicle Production, Tesla only manufactured 119 of its 2020 Ys for sale in the U.S. market in the fourth quarter of 2019 – but 29,216 of its 2020 Ys for customers in the third quarter alone. This equates to 28,071 2020 Model 3 in the first quarter and 22,667 of its 2020 Model 3 in the third quarter for the US market.

(Prior to release, NHTSA hadn’t released U.S. fourth-quarter production numbers for Tesla.)

In the course of 2020, Tesla was able to increase vehicle production and deliveries by ramping up production of the Model Y, successfully operating a new automobile plant in Shanghai and bringing in new suppliers of battery cells (together with its long-term partner Panasonic) to get more out of the high-voltage battery packs doing that powers his electric cars.

Tesla announced on Saturday that production of the Model Y has started in Shanghai and shipments of the Model Y Made In China are expected to begin shortly.

Musk has announced that he plans to increase Tesla’s vehicle sales from around 500,000 in 2020 to 20 million a year over the next decade. Plans for a $ 25,000 electric vehicle, Cybertruck, Semi, and the redesigned Roadster are in the works.

After Tesla’s Model S unveiling brought in higher than expected pre-orders in 2016, Musk said the company plans to produce 500,000 cars a year at the Fremont plant by the end of 2018. He also said Tesla would produce 800,000 to 1 million cars a year in Fremont by 2020, then reiterate the target in 2018 with a slight hedge that it could look closer to 700,000 to 800,000 a year in Fremont. The company has apparently not yet achieved this goal in California.

Looking ahead to 2021, Tesla is building new factories in Austin (Texas) and Brandenburg (Germany) to increase production and sales volumes, among other things. Musk warned shareholders on the company’s latest earnings statement that it could take 12 to 24 months to reach full capacity in new factories once commissioned – significantly slower than what Tesla achieved in Shanghai.

With Tesla facing a larger number of competitors in luxury and lower-cost segments around the world, IHS Markit predicts that EV sales will account for 10.2%, or 9.4 million, of the nearly 92.3 million vehicles expected to be sold worldwide in 2024 .

Correction: Tesla slightly missed its target for annual shipments, with the car company producing 179,757 Total vehicles in the fourth quarter. In an earlier version of this story, the annual target and fourth quarter production numbers were incorrectly stated due to processing errors.