The shortage of computer chips continues to affect the big three, the auto industry

DETROIT – The shortage of semiconductors that has hampered the car industry, has created shortage of vehicles and higher prices will not end soon.

Toyota, the world’s largest carmaker, has reduced its global production by 40%.

According to Mark Fulthorpe, with IHS Markit Production Forecasting, semiconductor manufacturing had stalled, but now testing and chip shipping are the current problem.

“We are seeing an overflow in Malaysian production right now, where we see returning cases of COVID that is disrupting another part of the supply chain,” Fulthorpe said.

Malaysia closed for two months and manufacturers only returned to work this week.

“COVID-19 was the problem in 2020 and semiconductors in 2021,” Fulthorpe said. “I think recent evidence shows that the two are intrinsically related.”

Announcements

Domestic car manufacturers have adjusted staff production.

GM will close the Orion assembly plant. The Lansing Grand River SUV plant was supposed to open before Labor Day, not now. Cadillac production that has been down since May will not return until mid-September.

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Ford will withdraw production at its F-150 plant in Kansas City. Your Dearborn Assembly is working and helping with tight supplies.

The shortage of vehicles and chips is expected to last in the second quarter of 2022. Fulthorpe said the industry will not recover until the pandemic ends.

Month: Automotive