The auto industry is stymied by a chip shortage.

0

The auto industry is stymied by a chip shortage.

According to their latest data, the global shortage of computer chips, which was initially dismissed by auto industry executives, has intensified and seriously impacted carmakers.

Stellantis and Volkswagen both reported production deficits of around 600,000 vehicles in July-September due to a shortage of semiconductors, which are used in many systems in both standard and electric vehicles.

Stellantis, which was formed at the start of the year following the merger of Fiat-Chrysler and Peugeot-Citroen, saw a 27 percent decline in shipments as a result.

Customer deliveries dropped by 24% at Volkswagen and nearly a third at GM. Ford’s sales plummeted by 27%.

“In August, the amount of scarcity was little more than we expected,” admitted Richard Palmer, Stellantis’ chief financial officer.

Chip shortages had already prevented the firm from producing 700,000 vehicles in the first half of the year, according to the company.

Volkswagen, on the other hand, said that “global semiconductor constraints harmed” its performance in the third quarter.

Due to a shortage of chips, both companies have had to frequently halt production at several of their operations.

Volkswagen said it now expects sales to be in line with 2020 figures, after previously anticipating a growth.

However, Volkswagen CEO Herbert Diess stated on the conference call that the industry had “passed through the worst” of the chip issue, expecting that the situation will improve in the fourth quarter even if “constraints” lingered into 2022.

This is a viewpoint shared by many of his opponents.

Mary Barra, the company’s CEO, stated on Wednesday that the business has seen “Although the situation “continues to be somewhat unpredictable,” there has been “some improvement” in chip supply, with more expected in the first quarter of 2022.

“We’ll see impact from the semiconductor scarcity in the first half of 2022,” she said, “but we expect it will get better towards the end of the year.”

Even though supply “remains an issue,” Ford noted in its results release that chip availability “markedly improved” in the third quarter compared to the previous quarter.

On an analyst conference call, Ford Chief Financial Officer John Lawler remarked, “We see it lasting beyond 2022.” He added that the problem could last until 2023.

According to AlixPartners, a global scarcity of computer chips may prevent the production of 7.7 million vehicles.

This would result in a revenue loss of 180 billion euros ($210 billion).

Carmakers were able to stop discounting automobiles or even raise prices, so their sales figures were stronger than their production data.

Stellantis managed to keep its income reduction to a minimum. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.

Share.

Comments are closed.