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.