The Chip Shortage Keeps Wreaking Havoc in the Car Industry as Plant Shutdowns Continue

Renault's Bursa plant 12 photos
Photo: Renault
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Everybody expected 2022 to bring a significant recovery for the global chip inventory, but obviously, the new problems that the world is now dealing with, including the geopolitical tensions in several regions, make the whole thing close to impossible.
In plain English, this means carmakers continue to struggle with the super-constrained chip supply, so their only solution is to stick with the same strategy they’ve been using for nearly two years already.

More often than not, this strategy comes down to measures meant to reduce the disruptions of the chip shortage in their daily operations, be they shipping cars without certain non-critical systems or temporarily halting the production at various plants.

The latter option is the one that’s being used right now by Renault, as the French carmaker sees no option solution for its facility in Bursa, Turkey, as per the local media.

The company’s local joint venture – Oyak Renault – is temporarily shutting down the production lines until mid-September in an attempt to deal with the lack of components, including the chips it installs on vehicles.

Unsurprisingly, this isn’t the first time this year when the local facility goes offline because of semiconductor shortages. Another halt happened in the summer when the production lines remained offline for 24 days.

For anyone wondering when the chip shortage could come to an end, this is a question that nobody can really answer. The most optimistic carmakers are no longer so confident that a significant recovery in the global chip inventory is possible this year, and most expect the constrained supply to continue until at least 2023.

Earlier this week, General Motors CEO Mary Barra also admitted that the chip crisis is likely to continue into 2023, adding that nobody should be surprised if the struggle would even continue “a little beyond” the next year.
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About the author: Bogdan Popa
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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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