Car makers halt production due to semiconductor shortage

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  • #136535 Reply
    Brydo
    Participant

    A global shortage of semiconductor computer chips continues to disrupt the automotive supply chain, with Toyota and Volkswagen among the latest crop of manufacturers forced to restrict production.

    Semiconductors – a crucial component for modern infotainment systems, driver aids and various electrical components – are in particularly high demand because of a pandemic-driven surge in demand for consumer electronic devices, including games consoles, laptops and tablets.

    Honda will pause production at its Civic factory in Swindon next week, due to a lack of the components – the third time in two months that the brand’s UK line has been forced to halt by supply bottlenecks. It currently plans to restart production on Friday 22 January.

    Toyota’s Chinese production lines were hit earlier in the week, while Audi and Volkswagen are reported to have reduced the working hours of nearly 19,000 German workers in light of the shortage.

    A Volkswagen spokesman told Autocar: “So far, we haven’t quantified the full volume impact as we continue to work intensively with our suppliers to minimise shortages. However, we expect the ramifications to continue at least in the first quarter, with potential to recover any lost volume later in the year.

    “Another issue we’re dealing with is the second wave of the Covid-19 pandemic and how it’s affecting not just our manufacturing operations but also the crucially important supply chain. Where employees or supplier staff are shielding or ill, that is of course resulting in pressure on productivity and supply – although of course our main focus is on protecting our own and our suppliers’ staff.

    “Like many UK companies, we made intensive preparations for Brexit, including ensuring a healthy quantity of stock in the country to cover any short-term logistic issues.”

    Meanwhile, in the US, Ford’s plant in Louisville, Kentucky, was idled earlier this week as the manufacturer was forced to pause production of its Escape and Lincoln Corsair models. Fiat Chrysler Automobiles took similar measures at its factories in Mexico and Brampton, Canada.

    The problem is being exacerbated by the fact that global car sales are recovering from a dramatic dip as a result of the pandemic in 2020, when semiconductor manufacturers – themselves forced to largely close for several weeks at the same time – ramped up supply to other industries as global lockdowns were eased.

    According to Bloomberg, consumer electronics producers are higher-value customers for semiconductor manufacturers as they place higher orders than car manufacturers. The site estimates that a billion smartphones alone are produced each year, compared with fewer than 10 million cars.

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

Viewing 4 replies - 1 through 4 (of 4 total)
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  • #136570 Reply
    Tharg
    Participant

    Right. So it’s back to valves, then…

    #136600 Reply
    ChrisK
    Participant

    If they use valves we will have to have our cars serviced every month or at 100 miles, whatever comes first.😊

    All the car factories have moved over to producing Covid vaccine and once that’s dealt with everything will be fine.😊

    I jest except I hope everything will be fine soon.

    #136623 Reply
    BigDave
    Participant

    I hope no one here is waiting for a Ford Focus to be built.

    Due to the semiconductor problems the Focus production line at Saarlouis, Germany will close down from 18th Jan to 19th Feb 2021.

    https://www.bloomberg.com/amp/news/articles/2021-01-15/ford-halts-focus-car-plant-for-full-month-due-to-chip-shortage?fbclid=IwAR1ezQO1Iqr40zPJfSAOp719KPzzC03BEbKaYylYDcDb5CMeYqGoBz_XOOo

     

    #136852 Reply
    Brydo
    Participant

    A global shortage of semiconductor computer chips continues to disrupt the automotive supply chain, with Audi’s boss now admitting the problem will see huge production shortfalls and the furlough of over 10,000 staff.

    Speaking to the Financial Times, CEO Markus Duesmann said the issue was “a crisis upon a crisis”, forcing production lines to slow to the point that up to 10,000 fewer Audi models could be built in the first quarter of 2021.

    Semiconductors – a crucial component for modern infotainment systems, driver aids and various electrical components – are in particularly high demand because of a pandemic-driven surge in demand for consumer electronic devices, including games consoles, laptops and tablets.

    This was compounded by an uptick in demand for new cars in the final three months of 2020 that beat forecasts. This meant manufacturers and suppliers were caught off-guard with late placed orders, and long lead times in chip production could mean delays of several weeks.

    Honda has paused production at its Civic factory in Swindon next week, due to a lack of the components – the third time in two months that the brand’s UK line has been forced to halt by supply bottlenecks. It currently plans to restart production on Friday 22 January.

    Toyota’s Chinese production lines were hit last week too, while Audi and Volkswagen were reported to have reduced the working hours of nearly 19,000 German workers in light of the shortage. Reports suggest the VW Group could produce up to 100,000 this quarter.

    A Volkswagen spokesman told Autocar: “So far, we haven’t quantified the full volume impact as we continue to work intensively with our suppliers to minimise shortages. However, we expect the ramifications to continue at least in the first quarter, with potential to recover any lost volume later in the year.

    “Another issue we’re dealing with is the second wave of the Covid-19 pandemic and how it’s affecting not just our manufacturing operations but also the crucially important supply chain. Where employees or supplier staff are shielding or ill, that is of course resulting in pressure on productivity and supply – although of course our main focus is on protecting our own and our suppliers’ staff.

    “Like many UK companies, we made intensive preparations for Brexit, including ensuring a healthy quantity of stock in the country to cover any short-term logistic issues.”

    Meanwhile, in the US, Ford’s plant in Louisville, Kentucky, was idled last week as the manufacturer was forced to pause production of its Escape and Lincoln Corsair models. Fiat Chrysler Automobiles took similar measures at its factories in Mexico and Brampton, Canada.

    According to Bloomberg, consumer electronics producers are higher-value customers for semiconductor manufacturers as they place higher orders than car manufacturers. The site estimates that a billion smartphones alone are produced each year, compared with fewer than 10 million cars.

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

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