By on August 19, 2021

Despite being one of the only manufacturers not to incur heavy production losses over the global semiconductor shortage, Toyota has announced that its luck has finally run out. The automaker is estimating that it will need to cut assembly by 40 percent this September.

It’s not alone. Both Ford and General Motors have announced they’re also stifling production this week to account for a deficit of chips. Even Volkswagen Group has been cautioning that it might schedule more downtime going into the fall. But that’s basically been the story for all of 2021. Toyota just happens to be the newest inductee.  (Read More…)

By on August 11, 2021

Apple has been in the headlines all week over changes to its policy that is introducing a image detection system that effectively allows the company to scan the iCloud to see if you have any illegal photos on there. While framed primarily as a way for the company to root out pedophilia, it’s gotten the company in trouble with an increasingly privacy savvy public that’s convinced the next step is generalized surveillance. But while the technology company has been busy trying to improve optics, issuing assurances that its new security protocols won’t overlap with government action and claims that its actions are no worse than what its chief rivals are already doing, the latest on the Apple Car is going unaddressed.

The off-and-on-again vehicle program is reportedly making moves with South Korean suppliers to ensure its got a lock on components. Curious, considering we were under the impression that the automobile was nowhere near completion(Read More…)

By on July 28, 2021

General Motors will resume full-size pickup assembly next week, leaving its crossovers will have to continue enduring production hang-ups related to the semiconductor shortage. American manufacturers have been absolutely creamed by supply shortages this year and a lack of chips really hurt pickup volumes. We’ve seen a lot of creative solutions, including automakers putting unfinished vehicles on the lot in hopes that they can install the missing hardware later.

But GM’s latest solution involves prioritizing Michigan’s Flint Assembly, Indiana’s Fort Wayne Assembly, Silao Assembly in Mexico — all of which were previously idled or operating on reduced schedules. Unfortunately, that means giving other North American facilities more downtime and, sadly, plenty of it.  (Read More…)

By on June 21, 2021

Subaru Legacy 2018 Logo Emblem Grille

The global semiconductor shortage has been particularly hard on Western automakers, though it’s not been peaches and cream for Asian brands. Following news that Nissan had run into issues resulting in additional downtime this summer, we’ve learned that Subaru is currently operating with a scant, nine-day supply of product and will be required to conduct more plant closures due to a lack of chips.

Having already stalled its Yajima plant on multiple occasions, as well enacting work stoppages at Subaru of Indiana Automotive (its U.S. facility), this is hardly where the brand wanted to find itself going into the warmer months. On Friday, Subaru announced it would be idling two plants in Japan’s Gunma prefecture this July.  (Read More…)

By on June 15, 2021

Rumor has it that the semiconductor shortage is going to be leaving Nissan facilities operating in North America to contend with a difficult summer. This issue appears to have been largely unavoidable but it’s hardly the position a manufacturer hoping to launch a comeback tour wanted to find itself occupying.

But, before we make this look like some failing on the part of Nissan, let’s take a look down memory lane to see some of the other companies that were negatively impacted by the chip shortage this year.  (Read More…)

By on June 14, 2021

With automakers having a difficult time keeping production schedules thanks to COVID restrictions nuking demand and upending supply chains, 2021 arrived with plenty of problems. Desperate to replenish fleets they had sold off while everyone was locked indoors, rental agencies went on a used car buying spree. But it wasn’t just rental fleets that needed to be restocked, dealerships are also finding themselves with fewer models on the lot than they’re accustomed to — which is a bad position to be in when surveys have revealed consumers are now willing to pay stupidly high prices for automobiles.

They’re reportedly going to great lengths to acquire used cars as the great buyup of 2021 continues.  (Read More…)

By on June 9, 2021

us-capitol, public domain

Apologies for all the semiconductor news. But it’s the topic of the day, with the United States Senate recently approving $52 billion in emergency spending to help bolster domestic chip production and another $190 billion for R&D programs.

Passing the vote (68-32) under the premise that boosting localized chip production would help prevent domestic automakers from having to cut corners, the Senate is also suggesting the funding could give the U.S. a competitive advantage against China. The Communist Party of China (CCP) has opposed the U.S. Innovation and Competition Act (formerly the Endless Frontier Act), with statements released from the National People’s Congress (NPC) demanding the legislation be halted immediately.  (Read More…)

By on May 26, 2021

Now that it’s effectively too late to avoid a crisis, the United States has begun asking itself whether or not now is the time to put into motion a plan that will eventually lead to the nation manufacturing its own semiconductor chips. As you’re undoubtedly aware, the automotive sector has taken a beating as Asian-based supply chains are experiencing what can only be described as unprecedented demand. But they aren’t building enough to satisfy everyone and the local markets are taking precedent.

U.S. Commerce Secretary Gina Raimondo proposed a $52-billion solution on Monday that would cram fresh government funds into production and research that could result in seven to 10 new U.S. factories. But that’s just to get the ball rolling on an industry that will take several years to mature, leaving some to wonder whether the country should even bother.  (Read More…)

By on May 24, 2021

The semiconductor shortage marches onward with no real end in sight. Supply chains remain a tangled mess following a year of pandemic-related restrictions and demand remains ridiculously high as we unnecessarily network and digitize increasingly more consumer goods (e.g. toothbrushes).

Though this website is really only concerned with the pace of automotive factories — most of which seem operating at the industrial equivalent of driving on the shoulder with the hazards on. The global number of vehicles lost in announced shutdowns and line slowdowns as a result of chip shortages is swiftly closing in on 3 million and estimates have it continuing on unabated for the rest of 2021.  (Read More…)

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

As if you needed more doom and gloom to kick off this week, the National Tank Truck Carriers (NTTC) lobby has confessed that its fleet will go into the next few months operating well below capacity. That means there’s a very good chance that some parts of the country could see gas shortages over the summer. While we’re praying that this doesn’t come with with the deluge of less-than-desirable automobiles that followed the infamous 1973 oil crisis, a similar spike in fuel price is likely as gasoline becomes sporadically difficult to find.

With the United States technically still energy independent, the culprit is not a foreign oil embargo but our own inability to plan ahead. North America was already operating with a deficit of qualified tanker drivers ahead of the pandemic. Lockdowns suppressed demand as everyone was forced to remain immobile, suppressing demand that ultimately encouraged widespread layoffs and early retirement. Now there aren’t enough drivers as demand stabilizes.  (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

Subaru Legacy 2018 Logo Emblem Grille

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 13, 2021

Those of you tracking the semiconductor shortage can probably take it easy for a while, as practically every industry group on the planet has tentatively agreed we’ll be seeing a chip deficit for a few years. Meanwhile, market analysts are trying to predict the next material we won’t have enough of and rubber is looking like an ideal candidate.

Rubber supplies are drying up and price increases are reportedly beginning to climb at an untenable pace. Despite several years of relatively stable availability and low prices, supply chain disruptions created by lockdowns have left latex harvesters in a bad position. Low prices encouraged many to over harvest their existing crop, rather than invest in farmland. But with shortages looking probable as countries began responding to the pandemic, China went on a buying spree to maintain a robust national stockpile in 2020. The United States was late to the party and now finds itself in a position where scarcity is driving rubber prices through the roof just when it needs to buy more.

(Read More…)

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