Chip shortage to affect global vehicle production into third quarter

03 February 2021 - 18:18 By Reuters
The semiconductor shortage could affect 672,000 units of global light vehicle production in the first quarter of 2021.
The semiconductor shortage could affect 672,000 units of global light vehicle production in the first quarter of 2021.
Image: Guido Vrola / 123rf

A shortage of car chips could affect 672,000 units of global light vehicle production in the first quarter, data firm IHS Markit said on Wednesday, warning that the disruption could extend into the third quarter.

Ford Motor Co, Toyota Motor Corp, Fiat Chrysler Automobiles and Nissan Motor Co had cut output because of the shortage, while Volkswagen has said the supply constraints would hit production at some of its plants in February.

“Because the cause of these constraints is the result of increasing demand from OEMs and limited supply of semiconductors, it will not be resolved until both forces are aligned,” said Phil Amsrud, senior principal analyst at IHS Markit.

China will be the hardest hit in the first quarter at nearly 250,000 units, according to IHS.

AutoForecast Solutions, which tracks industry production plans, on Tuesday forecast production volume impact of 964,000 vehicles in 2021 due to semiconductor shortage.

Meanwhile, a group of 15 US senators on Tuesday urged the White House to work with Congress to address the global semiconductor shortage.


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