Tuesday, October 4, 2022
News Semiconductor Shortages Worsen Once Again

Semiconductor Shortages Worsen Once Again

Chip shortage leads to another dip

  • After a small recovery, production cuts are back

  • Ongoing shortage could curtail seven percent of global production this year


It was looking like the semiconductor shortage’s impact on the auto sector was starting to disappear. Plants were reopening, part-built vehicles were headed to dealers, and summer breaks were being cancelled. Now a new report says that the problem is getting worse once again.

471,000 total vehicles were taken out of global auto production last week, reports Automotive News. 182,000 of those were at plants in the Asia-Pacific region and more than 160,000 were in North America.

The report says that General Motors slashed 42,600 vehicles last week across more than two dozen models, while Hyundai lost 27,000, including the Santa Fe crossover, Sonata midsize sedan, and the Santa Cruz.

Even Toyota and Honda, which had seen less impact previously, each cut production by more than 10,000 vehicles, says the report.

Auto News and AutoForecast solutions are now saying that the total number of vehicles that won’t be produced this year as a result of the semiconductor shortages has hit 4.1 million. It expects that up to 5.3 million cars and trucks could be affected worldwide.

That is not an insignificant figure, roughly seven percent of the total number of new vehicles sold worldwide in 2019. It will likely continue to lead to higher prices and lower incentives on both new and used vehicles, at least until production levels are restored. It’s still not clear when the shortage could end.

 

 

Trending Now

Hennessey Performance Unleashes the Velociraptor 500 Bronco

  Just when you thought the Ford Bronco couldn't get any more badass, Hennessey Performance goes and reveals its latest creation - the VelociRaptor 500...

Nine Things You Need to Know About the Dodge Challenger

Pricing for the 2022 Challenger starts at $38,165 in Canada and $30,940 in the US. The Challenger bows out of production after the...

Rivian is on Track to Meet its 2022 Production Goals

The automaker’s production increased 67% during the last quarter. Rivian wants to build 25,000 vehicles in 2022. The company has now produced 14,317...

BMW Unveils the XM, the Most Powerful Vehicle in its History

The following vehicle leaves the factory with a plug-in hybrid powertrain, but let's just say that its primary mission is to deliver a good...

The 2023 Kia Niro Hybrid will Start at $26,490 in the US

Three trim levels will be available Sales will begin this month in the United States The plug-in hybrid and the electric versions will...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.