Ford, GM Pausing Production in Michigan Over Parts Shortage

Ford Motor Co and General Motors will be individually suspending production in Michigan next week due to supply chain constraints. However, it’s difficult not to notice that the chosen facilities are responsible for lower-volume models they could probably afford to idle.

GM is stalling Lansing Grand River Assembly and Stamping, citing a parts shortage it said had nothing to do with the ongoing deficit of semiconductor chips. The company later stated that the Russo-Ukrainian war had not played a factor, abandoning the two most popular excuses for why something isn’t being done in 2022. Meanwhile, Ford has said the chip shortage has everything to do with its temporary closure of Flat Rock Assembly.

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Semiconductor Shortage By the Numbers, Looks Bad

The global shortage of semiconductor chips has really done a number on the industry and it’s just one of several major supplier issues created by our response to the pandemic. Years from now, people will look back and use the benefit of hindsight to come up with the perfect solution to a problem that has since evaporated. But all we can manage in the present is an up-to-date tally on how much product is being lost and wait for better news.

AutoForecast Solutions (AFS) has been keeping tabs on the situation and recently updated its numbers through the week of April 30th. Production schedules in North America are now reportedly 121,000 vehicles shy of where they’re supposed to be. Though we need to pull back and take a gander at what the whole industry was facing ahead of the latest figures to have a more complete understanding of this particularly dire automotive quagmire.

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Auto Industry Requests U.S. Government Help With Chip Shortage

The Alliance for Auto Innovation (AAI) is hard at work begging the federal government for help while the world continues coping with the semiconductor chip shortage, though it’s hardly the first time the industry has asked for or received administrative assistance. With pandemic lockdowns throwing global supply chains into a tailspin, U.S President Joe Biden said his administration would be seeking $37 billion and new legislation to address the chip shortage while federal agencies were directed to see what could be done in the interim.

But there’s little to be done with the brunt of the relevant manufacturing taking place in Asia, hence the AAI lobby requesting U.S. Commerce Department set aside some cash for domestic chip production in a new bill.

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How Many Vehicles Will the Chip Shortage Really Cost Us?

While the global semiconductor shortage is often reported as this out-of-nowhere surprise that has totally rattled smartphone and automotive manufacturers, 2020 was rich with signals that trouble was afoot. Global lockdowns forced factories to shut down, creating a lapse in demand in damn-near everything. By the time lines started firing back up, supply chains had become a disorganized mess. Nobody knew quite where to focus their efforts. But it was clear that everyone was going to be spending a lot more time indoors, resulting in an elevated need for the sort of components that go into mobile devices, television sets, personal computers, and other electronic gizmos.

Automobiles saw demand suppressed by around 15 percent (year-over-year) in 2020. However, the year ended with increased demand the industry figured would carry over into 2021. That, in conjunction with vehicles needing more semiconductor chips than ever to make sure they’re equipped with the latest features and perpetually connected to the internet, has automakers sweating. Practically every name in the industry has announced production shortfalls. But just exactly how many vehicles are we expected to lose from this?

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Coronavirus Delays Beijing Auto Show, Chinese Grand Prix, Formula E

Thanks to the ongoing coronavirus outbreak in China, the Beijing auto show has reportedly been postponed. While the event was supposed to take place at the end of April, making its yearly trade with the similarly biannual Shanghai trade show, organizers have decided it’s not worth the risk.

Over 70,000 people have reportedly contracted the virus thus far, with the death toll estimated to be somewhere around 1,700. The White House recently said it did not have “high confidence in the information coming out of China,” estimating higher figures. Travel and shipping bans further complicate the matter. Germany’s Automobilwoche said exhibitors wouldn’t be able to ship displays into the country anyway, referencing health notices sent to global logistics organization CIETC.

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Coronavirus Infects Chinese Auto Market, Supply Chain Problems Persist

Not that there’s ever a good time for a global pandemic threat, but the coronavirus currently sweeping through Asia really could have scheduled itself more conveniently. China was already in the midst of an economic downturn when the virus reared its ugly head, with the country’s automotive sector having just moved backward for the second year in a row. The outbreak, centered in the Hubei province’s capital of Wuhan, is guaranteed to worsen the issue.

Responsible for about a tenth of China’s automotive manufacturing power, the region has basically gone dark since the outbreak picked up steam late last month. Over 50 million people are now presumed to be under house arrest due to the Chinese quarantine. Forbidden from going outside, they’re hardly likely to risk infection and government ire just to put for a few hours at their local factory. They also aren’t going to run out to their nearest dealership to support the ailing economy — but that’d be the first place to go after the sequestration ends.

If I were in their shoes, I certainly wouldn’t be taking the bus for a while.

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  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?