Photo: GM
As if it wasn’t already obvious, the chip shortage isn’t going anywhere, but what’s even more concerning is that it doesn’t seem to be easing off either.
As a result, carmakers out there continue to struggle with very difficult market conditions, sometimes really striving to find a way to keep the production going.
Unfortunately, many of their efforts fail to produce a noticeable improvement, so more often than not, they end up turning to even more painful measures supposed to help reduce the disruptions caused by the lack of chips.
In the most recent series of measures aimed at the chip shortage, carmakers have started pausing orders for certain models in their portfolio, all because they can no longer keep up with the demand. This isn’t necessarily because the demand is at a record level but due to the production being substantially slowed down by the constrained chip inventory.
Not a long time ago, Ford stopped taking Mustang orders in Australia, and a few days ago, Toyota followed in its footsteps with the Land Cruiser. The Japanese carmaker says that it has no other option than to pause accepting orders for the SUV, as otherwise, it would need up to four years to ship all the vehicles.
Nissan and Honda have announced a similar measure for certain models, and once again, the production impacted by the lack of chips is the main reason for the whole thing.
Is there any chance of seeing the chip inventory improving by the end of the year? There is, but the consensus right now is that the shortage wouldn’t come to an end earlier than 2023 or, worse, 2024. Chipmakers also claim they are fully sold out until the end of the year as well, and some expect the strong demand from automakers to continue until at least the half of 2023.
Unfortunately, many of their efforts fail to produce a noticeable improvement, so more often than not, they end up turning to even more painful measures supposed to help reduce the disruptions caused by the lack of chips.
In the most recent series of measures aimed at the chip shortage, carmakers have started pausing orders for certain models in their portfolio, all because they can no longer keep up with the demand. This isn’t necessarily because the demand is at a record level but due to the production being substantially slowed down by the constrained chip inventory.
Not a long time ago, Ford stopped taking Mustang orders in Australia, and a few days ago, Toyota followed in its footsteps with the Land Cruiser. The Japanese carmaker says that it has no other option than to pause accepting orders for the SUV, as otherwise, it would need up to four years to ship all the vehicles.
Nissan and Honda have announced a similar measure for certain models, and once again, the production impacted by the lack of chips is the main reason for the whole thing.
Is there any chance of seeing the chip inventory improving by the end of the year? There is, but the consensus right now is that the shortage wouldn’t come to an end earlier than 2023 or, worse, 2024. Chipmakers also claim they are fully sold out until the end of the year as well, and some expect the strong demand from automakers to continue until at least the half of 2023.
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