Photo: Hyundai
Depending on who you ask, the end of the chip shortage is either already on the rather or a dream that wouldn’t come true too soon.
For example, Toyota has recently decided to temporarily shut down some production lines at several facilities while also cutting its production goal for the next month. The reason comes down to the constrained chip inventory, as Toyota does not have enough semiconductors to install on the vehicles it makes.
On the other hand, Volvo says the worst part of the crisis is over, explaining that its current chip inventory is at full supply.
Hyundai seems to be one of the companies that are preparing for a future without chip problems, as the company is now getting ready to increase production gradually at most of its facilities. The goal is to meet the consumer demand in the second half of the year, especially as its sales throughout 2022 have been lagging behind the 2021 levels due to the constrained chip inventory.
Hyundai will reportedly reintroduce overtime and weekend shifts at all plants in South Korea, as its plan is to operate at the maximum speed specifically to build as many vehicles as possible. This way, the company believes it could speed up the recovery from the previous months, as it expects a gradual recovery in the short term.
Nevertheless, analysts call for extra caution when it comes to the global chip inventory. The current geopolitical tensions in Europe, as well as the rising inflation, the increased raw material prices, and the supply woes, could still cause disruptions in the automotive industry, even after the chip inventory returns to normal.
Hyundai, however, is working around the clock on boosting production as it hopes it can finally align the manufacturing output with the global demand. The company says its SUVs and the Genesis models are selling strong these days, and it expects the demand to remain high in the coming months.
On the other hand, Volvo says the worst part of the crisis is over, explaining that its current chip inventory is at full supply.
Hyundai seems to be one of the companies that are preparing for a future without chip problems, as the company is now getting ready to increase production gradually at most of its facilities. The goal is to meet the consumer demand in the second half of the year, especially as its sales throughout 2022 have been lagging behind the 2021 levels due to the constrained chip inventory.
Hyundai will reportedly reintroduce overtime and weekend shifts at all plants in South Korea, as its plan is to operate at the maximum speed specifically to build as many vehicles as possible. This way, the company believes it could speed up the recovery from the previous months, as it expects a gradual recovery in the short term.
Nevertheless, analysts call for extra caution when it comes to the global chip inventory. The current geopolitical tensions in Europe, as well as the rising inflation, the increased raw material prices, and the supply woes, could still cause disruptions in the automotive industry, even after the chip inventory returns to normal.
Hyundai, however, is working around the clock on boosting production as it hopes it can finally align the manufacturing output with the global demand. The company says its SUVs and the Genesis models are selling strong these days, and it expects the demand to remain high in the coming months.
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