Friday, May 27, 2022
News Microchip Shortage Is Not Done Affecting The Auto Industry

Microchip Shortage Is Not Done Affecting The Auto Industry

The announced production output losses amount to over 700,000 units but this could be only the tip of the iceberg


  • North American and European production will be most affected.

  • Both areas will see 450,000 fewer vehicles produced.

  • Projected numbers could more than double this figure.


The story about microchip shortages for the automotive industry began late last year when a handful of automakers announced that they will be forced to idle a plant or two. Since then, most automakers have been forced to cut production of new vehicles for more than a week.

Up to now, the number of vehicles not produced based on plant closure dates has reached 705,000 units. At the moment, nine plants across the globe are scheduled to be offline for more than 21 days because of the shortage, according to Automotive News (subscription required).

Chip Shortages May Heavily Impact New Vehicle Outputs

Six of these plants are located in North America, two are in Asia-Pacific and the final one is in Europe. Based on the source, plants that shut down for more than 21 days may never recover the lost output.

More alarming than the announced production drops is the projected impact of this ongoing shortage. The number of units lost could rise to 1.4 million units globally, of which nearly 925,000 would come from North America. Ford, GM, and Stellantis have all so far needed to idle or delay production of some of their most profitable products this month.

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Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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