![]() The average car has between 50 to 150 chips in it, Dziczek said, adding that the chip shortage will affect operations at automakers as well as their suppliers, who account for far more jobs than at the the assembly plants. “It looks like while the industry will resolve the shortages in 2021, the production impact may stretch into the third quarter.” “The magnitude of the impact of the semiconductor issues continues to grow week-to-week,” she said. The problem for the industry cannot be fixed quickly according to Kristin Dziczek, vice president of research at the Center for Automotive Research, a Michigan think tank. Last week Ford said that its first quarter production would be cut by between 10% to 20% because of chip scarcity, which if it extends into the second quarter could cost the company between $1 billion and $2.5 billion in 2021. ![]() The chip shortage has become a major and growing problem for major automakers around the world, with plants in North America, Asia and Europe all experiencing temporary shutdowns. This will help us quickly meet strong customer demand as more semiconductors become available.” ![]() “In addition, when there is a shortage of semiconductors that impacts production, in some cases we intend to build vehicles without certain modules and will complete them as soon as possible. “Our intent is to make up as much production lost at these plants as possible,” the comp-any said in a press release. (GM) reports its latest financial results Wednesday morning. Last week GM announced that three of its North American plants – the Fairfax plant in Kansas City, Kansas, the CAMI plant in Ingersoll, Ontario and the San Luis Potosi plant in Mexico – would be shuttered this week due to the chip shortage.īut on Tuesday the automaker said it would extend the shutdown through at least mid-March, at which time it will reassess its production plans. The computer chip shortage is taking a bigger bite out of General Motors’ production plans than the company originally expected.
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