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American Carmakers Are Most Affected by the Chip Shortage, Huge Production Cuts Expected

Latest production estimates show the number of vehicles cut from production schedules at North American factories more than doubled last week. The situation remains tight around the world, but carmakers in China, South America, and Middle East/Africa seem to recover.
American carmakers are the most affected by the chip shortage 8 photos
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North American plants are the most affected by the ongoing global chip shortage, with 221,500 vehicles cut from production schedules so far this year. Just a week earlier, AutoForecast Solutions evidenced 95,700 vehicles, which means the chip shortage more than doubled the production cuts in the past week. According to ASF estimates, a total of 527,400 vehicles have been axed from manufacturers’ assembly plants worldwide which translate into a 42% increase.

European plants saw a more moderate production loss, with only 142,000 vehicles. This compares favorably to last week’s estimate of 124,600 vehicles. In the top of the most affected plants follow those in Asia (outside of China) with 69,200 vehicles, a 22% increase compared with last week. There were no changes in China, South America, and Middle East/Africa plants, with the same 51,000, 37,500, and 5,000 vehicles respectively.

In North America, the projected production cut for the entire 2022 is at 384,700 vehicles, so we’re already past half that in February. We don’t know if those estimates will hold later into the year, especially as there is no ease in sight in the following months. The insight is offered by AutoForecast Solutions and documents the manufacturing disruption caused by the global microchip shortage.

Of course, some carmakers are more affected than others and we know Ford had to stop production at several plants in the U.S. due to the chip shortage. Ford announced last week they will idle the Michigan Assembly Plant in Wayne where the Ranger and Bronco are manufactured, as well as the Chicago Assembly Plant in the state of Illinois where the Ford Explorer, Police Interceptor Utility, and Lincoln Aviator mid-size utility vehicles are produced.

Stellantis has also stopped Chrysler Pacifica production at Windsor Assembly in Ontario, citing the same chip shortage. On the other hand, General Motors is among the more optimistic carmakers. Two weeks ago, CEO Mary Barra said the worse of the chip shortage is over and that she expects record sales this year.

 
 
 
 
 

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