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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsA Silicon Chip Shortage Is Causing Big Issues for Automakers
YOU MAY HAVE noticed that it's difficult to get ahold of new high-end graphics cards and game consoles these days. In large part, that's due to an ongoing global shortage affecting semiconductor foundries. As it turns out, the problem is even more pronounced in the auto industry. In fact, it's getting so bad that a number of OEMs, including Ford and General Motors, have had to go as far as idling shifts and even entire factories.
Ford had to stop production in Kentucky in December of 2020, and in January, it ordered a month-long pause at a German factory. Stellantis (the new company formed by a merger between Fiat Chrysler and Peugeot) reduced output at factories in the US, Mexico, and Canada around the same time. As did Audi, which had to idle 10,000 employees in Germany, CEO Markus Duesmann said, telling the Financial Times that the problem involved "a very long chain with different supply levels on the components that we are short." Subaru's Gunma factory in Japan has been affected. Production of Toyota's Texas-produced Tundra has, too.
This week, more hits keep coming. Mazda just announced it might have to cut output by 34,000 units this year due to a lack of chips. Nissan's truck factory in Mississippi has reduced its hours. And on Wednesday, GM said it will halt production at factories in Kansas, Canada, Mexico, and South Korea. In many cases, the automakers are trying to prioritize their more in-demand products, but as some of those closures show, that isn't always possible.
Why Is This Happening?
As you might expect, the problem has its roots in the coronavirus pandemic. As countries around the world imposed new public health rules, automakers cut output, and car dealerships and showrooms closed to stop the spread of the disease. As sales dried up, the OEMs scaled back orders for semiconductor chips, dozens of which go into every new car to control just about everything. Similarly, the chipmakers scaled back their production of these chips in response to dropping demand.
https://www.wired.com/story/silicon-chip-shortage-automakers/
Turbineguy
(37,319 posts)can leave the secret chip out of the 2nd vaccine?
Klaralven
(7,510 posts)In anticipation of more US sanctions against their manufacturers.
Everybody is finding out the "just in time" supply chains don't work across Cold War frontiers.