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One More Carmaker Confirms the Obvious, Chip Shortage Not Going Away Too Soon

If it’s not already obvious, 2022 is off to an awful start from so many perspectives, and when it comes to the global chip shortage, the first month of the year brought no improvement versus late 2021.
Mitsubishi says it doesn't expect the chip shortage to be over too soon 7 photos
Photo: Mitsubishi
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And what’s even worse is that carmakers around the globe are now struggling to deal with another wave of the shortage, as the chip inventory remains incredibly constrained worldwide.

Mitsubishi, for example, has recently confirmed that it expects the impact caused by the chip shortage to continue for “at least” six months. In case you’re wondering what’s with the quotes, they are there to emphasize that the chip nightmare could last even longer, simply because nobody knows exactly when the whole thing is supposed to come back to normal.

Mitsubishi Motors de Mexico President and Chief Executive Officer Jorge Vallejo say the local production of cars is likely to be slower than anticipated due to an awful mix of the global health problem and the lack of semiconductors.

When the two are combined, carmakers out there have no other option than to close certain factories temporarily, therefore affecting their expected output.

Unfortunately, this doesn’t happen only in Mexico but pretty much all over the world. Ford has recently confirmed that it’s suspending the production of the 2022 Mustang due to the same reason, with others very likely to follow in its footsteps rather sooner than later.

Analysts originally projected a more solid recovery in terms of chip supply in the second half of 2022, but on the other hand, few actually took into account another wave of the health crisis in the first place.

Depending on what happens when this new wave comes to an end, the global chip inventory may or may not be improved. But until this happens, however, carmakers have no other option than to work non-stop on minimizing the disruptions in their daily operations.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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