In the United States, car manufacturers are announcing one after another to shut down some of their plants due to a lack of a tiny but essential part. Now they have run out of supplies, which they can reload due to the pandemic.
The lack of microchips, which has caused problems for car manufacturers in other parts of the world, has also reached the United States – reported and the Wall Street Journal. With this, it very much looks like the automotive industry can say goodbye to its hopes that a rapid, smooth recovery will follow last year’s deep flight. Ford shut down its plant in Lousville at the beginning of the second week of January because it doesn’t have enough microchips, which are now an essential part of cars from displays to electronic safety systems. Ford Escape and Loncoln Corsair SUVs sent 3,900 people on forced rest.
Honda, Fiat Chrysler, General Motors and Toyota are wearing similar shoes. The former will take back production of the Civic and Accord sedans by 2,200 in mid-January in North America. Fiat Chrysler will shut down its Mexican plant for Jeep models and a Canadian plant for various sedans. GM wrote to its suppliers calling for a year-round stockpile of chips. Toyota takes back 40 percent of Tundra pickup production in Texas. The largest Japanese automaker does not expect improvement until the summer months.
They are on the floor
The chip shortage first occurred at the end of 2020 at Chinese automakers – such as Volkswagen’s plant there – in response to a surge in demand for electronics after people spend a lot of time at home. This demand drained some of the chips. Automakers have remained hoppy after becoming one of the largest consumers of microchips in recent years. Today, an average car model incorporates 40 different microchips, but the most expensive models can also contain 150 such parts, says Sam Abuelsamid, an analyst at consulting firm Guidehouse Insights.
The end of the story was that the carmakers got caught in the pliers. On the demand side, customers have been severely depleted, while supply will now also have problems with supply due to the lack of icipici parts. At the beginning of the pandemic, many lost workers were a problem, in addition to transport-logistics problems, now the shortage of parts. Some companies are struggling to reduce their spending in the past in response to the crisis, so they no longer have room for maneuver in this area. In normal years, we have a response to temporary disruptions, but now we are on the floor, a supplier manager described the situation.
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