By on May 6, 2021

After months of seeing factories idled, it seems that the global semiconductor shortage has encouraged the automotive sector to rethink some production strategies. Numerous brands have opted to strip vehicles of specific features to help offset the ever-worsening chip problem, occasionally supplanting them with older hardware.

Well, well, well. It looks like the push into electromobility hasn’t gone quite as planned and the industry has come crawling back to analog in some cases. Though it would be premature to break out the campaign and declare the old ways superior for all time. The resurgence of analog hardware is likely to be short-lived, ending the second the semiconductor shortage lets up. As much as your author wants to believe the industry will learn a lesson about not putting all your eggs in one basket, it didn’t seem to in the last century and is unlikely to come around during this one.  (Read More…)

By on May 3, 2021

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.  (Read More…)

By on April 21, 2021

In today’s update on the semiconductor shortage, we learn that Daimler has elected to place over 18,000 Mercedes-Benz employees on reduced schedules. With an insufficient number of chips, the manufacturer cannot produce vehicles with sufficient reliability and has decided to ease off until resupplies are more predictable. Unfortunately, that’s unlikely to happen for at least a few months — forcing Mercedes to roll with the punches much like Subaru, General Motors, and Ford. Though this is a problem that’s impacting the entirety of the automotive industry.

Daimler made its announcement on Wednesday, stating that facilities in Bremen and Rastatt will be the first (and hopefully only) plants affected by the stall.  (Read More…)

By on April 20, 2021

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Today’s update on the global semiconductor shortage involves Subaru, which recently announced that it would be suspending production at its plant in Indiana.  Lafayette’s Subaru of Indiana Automotive (SIA) will be idled through the end of April while the automaker waits for suppliers to catch up. It’s a situation we’ve seen numerous manufacturers forced into this year, with Ford arguably being the most relevant for the North American market.  (Read More…)

By on April 9, 2021

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Ford will be ignoring the typical two-week summer shutdown this year as a way to make up for production downtime caused by the semiconductor shortage. That’s undoubtedly going to complicate some vacation plans. But Blue Oval has already given loads of workers time off and has more downtime planned through April and now that the necessary factory maintenance can be accomplished while assembly lines are idled during supply chain issues, leaving employees to schedule any time off through their local union.  (Read More…)

By on April 6, 2021

us-capitol, public domain

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.  (Read More…)

By on March 26, 2021

The industry is having to stall more plants to contend with the semiconductor shortage that’s currently making it more difficult for you to get everything from a smartphone on up to your next vehicle. Ford Motor Co. recently informed employees that its Dearborn truck plant (easily one of its most profitable facilities) would need to be idled through the weekend to create a buffer for semiconductor chips. Worse yet, it’s not the first time the automaker has had to stall output of the F-150 this year. Ford has also started manufacturing trucks without all the necessary components, stating it would hold vehicles for a few weeks to account for supply chain delays.

Meanwhile, Chrysler has made a similar announcement about its minivan output as Windsor Assembly faces another chip deficit. Unifor Local 444 recently stated that the facility would be staring down the barrel of a four-week shutdown starting next week. Considering Chrysler’s minivans literally just dealt with a three-week stall over the chip shortage, union workers are understandably upset. Days earlier, General Motors Canada also announced that its CAMI plant in Ingersoll, Ontario, will likely remain idle until the middle of April.  (Read More…)

By on February 25, 2021

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On Wednesday, Ford CEO Jim Farley told attendees of the Wolfe Research Auto Conference that the United States needs to start building batteries for the industry’s planned deluge of electric vehicles now that semiconductor shortages have revealed the dangers of needing to source essential components from the other side of the planet.

Farley is likely correct in stating that America really should be able to supply itself, and not just in regard to semiconductor chips. Pandemic-related lockdowns crippled countless industries by upsetting the balance of supply lines. Halfway through 2020, farmers were dumping millions of gallons of milk per day and plowing up fields of eatable vegetables as restaurants were shutdown; factories were idled as part shortages became commonplace; cleaning supplies and disinfectants became impossible to find.

But it’s hard to translate that into sympathy for Ford because, while all of the above was happening, the automaker’s leadership was saying that there was no good reason to manufacture its own batteries.

(Read More…)

By on February 22, 2021

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?

(Read More…)

By on February 18, 2021

Automakers around the globe have been issuing warnings for weeks that the semiconductor shortage will eventually result in fewer cars and leaner profitability reports. But the absent chips are affecting just about every industry producing modern connected devices, creating fears that electronic prices could skyrocket as availability dwindles. Lockdowns effectively crippled semiconductor supply lines right as demand peaked and everyone is starting to get a little worried about how it’s going to impact production in other industries.

The White House is reportedly taking steps to mitigate the issue by tasking Brian Deese (Director of the National Economic Council) and Jake Sullivan (National Security Adviser) with coming up with a solution. It’s also asking embassies to assist chip suppliers around the world however possible and hopefully suss out a way to stop the global shortage. Meanwhile, Deese and Sullivan will be focusing the brunt of their efforts on Taiwan.

(Read More…)

By on February 5, 2021

Residual complications from COVID-19 lockdowns and overdependency on Central Asian suppliers have left most of the automotive industry fretting over where they’ll be sourcing their semiconductor chips in 2021. What started as an issue forcing a handful of manufacturers to rejigger their assembly schedules has evolved into a worldwide problem. This week, practically every automaker with a global footprint announced that it would be suspending production at key facilities to contend with the shortage or issued warnings that their Q1 earnings might be negatively impacted if supply failed to stabilize.

On Thursday, Volkswagen Group decided this was unacceptable and demanded that something be done about it in Europe — which is the region that has arguably been hit the hardest.  (Read More…)

By on February 4, 2021

While the Great Semiconductor Shortage of 2021 probably isn’t going to the defining historical topic of the modern era, it’s presently doing a number on the automotive industry. Volkswagen Group, Ford, Mazda, Nissan, Subaru Corp., Toyota, and Stellantis have all reported the need to scale back production this year.

On Wednesday, General Motors said that it would also have to handle the issue by closing down four plants next week. Affected sites include Kansas’ Fairfax Assembly, Ontario’s CAMI Assembly, and Mexico’s San Luis Potosí Assembly. GM Korea will likewise be operating Bupyeong 2 at half capacity, according to Reuters(Read More…)

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