Automakers Tweak Production Over Microchips
Ongoing shortage forcing brands to trim production, especially in North America.
Ongoing shortage forcing brands to trim production, especially in North America.
IMAGE: Getty Images/golibtolibov
Microchip shortages continue to plague the automotive industry, as the latest report by AutoForecast Solutions estimates that carmakers will cut planned global production by 47,800 more vehicles this week.
Nearly 60% of the cut will come at North American assembly plants, the rest in China.
Before the latest reduction, 3.3 million vehicles were scratched as a result of the semiconductor shortage, AutoForecast says, in just one supply chain hiccup affecting the industry.
Carmakers have had to adjust production in various ways in order to adapt, including prioritizing certain models over others and temporarily eliminating some features, such as heated seats.
The microchip shortage is expected to stretch at least into next year. The Biden administration invited Mexico this month to work with it to increase production there in order to ease U.S. dependence on Asia for electric vehicle materials.
Meanwhile, consumers sometimes don’t find the exact models they want or have to wait to get them.
Originally posted on P&A Magazine
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