News – PH – Chip shortage continues to cause chaos in new car production

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The pandemic continues to hamper social and industrial activities alike As the world is stuck indoors and technology is more important than ever to keeping people connected, electronics sales have spiked when you match the increased demand with one Linking slowed production due to COVID-19, you have the perfect storm to create an industry-wide shortage.This is exactly what happened to one of the most fundamental building blocks for electronics: semiconductors

This has already been a growing problem for the auto industry as vehicle production slowed months ago due to chip shortages.Some automakers have already started cutting output or stopping some production lines entirely to ensure higher profit vehicles have priority and now, according to new information from General Motors and Stellantis, this problem does not seem to be going away anytime soon

Automakers have competed with global electronics manufacturers in the battle for these semiconductors.The demand for devices has been fueled by teleworkers, school-age children who need distance-learning technology, and people who are simply bored at home and looking for a hobby during the pandemic , Strengthened Of course, all of this demand has resulted in a supply bottleneck, and vehicle production bears the brunt of it

Automakers like Hyundai and Toyota have limited production delays by stockpiling components, but even Toyota has slowed production of its Tundra pickup at its San Antonio, Texas facility to keep supplies going, which means fewer vehicles on the go Road and ultimately less profits for the automaker

General Motors believes that this problem has led to a worldwide shortage of 216 units, according to Reuters000 vehicles, which would translate into a loss of profits of up to $ 2 billion. Similarly, Ford stated in February that the lack of chips should bring profits down to as much as $ 2.5 billion by forcing manufacturing reductions of up to $ 5 billion to 20 percent In its quarterly financial report, Stellantis did not comment on the expected losses (if any) due to the shortage and called it a “great unknown” “

Overall, it was never a secret Volkswagen warned that it would loom in December 2020, and as demand for new vehicles continued to stabilize, it hit the industry like a freight train to make matters worse, several key ones had to Electronics facilities in Texas, including Samsung, NXP, and Infineon, will be shut down during the state’s massive winter storm in February, temporarily exacerbating the problem
In fact, the White House was at the center of the shortage, which led President Joe Biden to sign an executive order last week to identify semiconductor shortages in other critical supply chains

It’s not clear when the problem will be fixed on its own, and industry players are even torn on the potential timeline. For example, GM CFO Paul Jacobson believes the offer is in the second Should stabilize in the first half of the year and not affect the company’s finances further, while Stellantis CEO Carlos Tavares was “not so sure” that the problem could be fixed this year

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Automotive, Shortage, General Motors, Manufacturing, Car Seat

News – PH – Chip shortages continue to cause chaos in new car production

Source: https://www.thedrive.com/news/39619/chip-shortage-continues-to-wreak-havoc-on-new-car-production