News – PH – First microchips, now automotive suppliers risk a shortage of seat foam

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Automakers trying to move through a microchip shortage while mitigating the effects of a global pandemic may have a new problem to worry about, the severe winter storms that hit Texas in February 2021, thousands Left behind without electricity and water, the refineries that supply the raw materials for seat foam also closed

Getting to the bottom of the problem requires a surprisingly long supply chain. Foam, found under the upholstery of most car seats, is often made from polyurethane, which is made using an organic compound called propylene oxide, which is industrial Liquid, in turn, is created with by-products of the oil refining process

This is where Texas comes in: its refineries provide the petroleum by-products that start the whole process.The storms that freeze much of the Lone Star state caused power outages that paused the refineries, anonymous sources reported to Automotive News that some Suppliers on 8 March the foam could run out, even though they didn’t single out the affected companies

“Everyone’s crawling This problem is bigger and closer than the semiconductor problem,” said one executive

Other executives – all anonymous – spoken to in the publication called the issue “a threat, not a given”” Some added that the bottlenecks could become problematic in the second half of March 2021. Sourcing foam from overseas suppliers is possible, but a short-term reorganization of the supply line is much easier said than done

Surprisingly, automakers aren’t as alarmed as companies further up the supply chain General Motors Doesn’t Expect Immediate Impact on Production Toyota found it was too early to recognize the short-term impact of the shortage on its factories in North America predict while Hyundai and Kia monitor the situation Stellantis is also watching the development of things but does not expect any impact on its business

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Automotive industry, General Motors, shortage, production, car seat

News – PH – First microchips, now automotive suppliers risk a shortage of seat foam

Source: https://www.autoblog.com/2021/03/05/first-microchips-now-automotive-suppliers-risk-shortage-of-seat-foam/