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Several car makers cut production due to chip shortages

SemiMediaEdit
January 12, 2021

Ford, Fiat Chrysler, Toyota and other automakers recently stated that they will reduce car production due to semiconductor shortages.

Ford said its assembly plant in Louisville, Kentucky, USA will suspend production for a week. Fiat Chrysler will postpone the production restart time of its Mexico plant and its plant in Brampton, Ontario, Canada will also stop production. Toyota will reduce the production of some pickup trucks at its San Antonio, Texas plant.

Due to the faster-than-expected rebound in production from global automakers, manufacturers of cars and electronic products are currently facing chip shortages. At the same time, affected by the Covid-19 epidemic, the number of people working from home worldwide has increased and the demand for personal computers has increased, making global chip production capacity tight, which is one of the reasons for the current shortage of automotive chips.

People in the auto industry pointed out that in the near future, automakers will give priority to producing models with higher profits. However, General Motors and BMW said on the 8th that they have not been affected by the shortage of chips for the time being and are currently paying close attention to the supply chain.

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