Automakers are scaling back vehicle production as chip shortages bite

[midian182]

In brief: One of the many effects of the pandemic has been a chip shortage leaving consumers fighting over the few new consoles, graphics cards, and CPUs that arrive on the market. It’s a problem that extends beyond home electronics and PCs—the automotive industry has been hit hardest of all.

Ford is one of several automakers that has been forced to slow production of its vehicles due to the global semiconductor chip shortage—manufacture of its popular F-150 pickup trucks is being cut back at plants in Michigan and Missouri.

Ford also stopped all production in Kentucky last December, and this month issued a month-long pause at a German factory, notes Ars Technica.

Other companies have faced the same situation: GM, Audi, Honda, VW, Subaru, Toyota, Mazda, Nissan, and Stellantis (formed from the Fiat Chrysler/Peugeot merger) have all reduced or say they may reduce their output.

The pandemic is to blame for the vehicle industry’s state, though not how you might imagine. The first lockdowns saw car sales plummet last summer—by over 97 percent in the UK—leading to the temporary closure of vehicle manufacturing plants and showrooms. In response, chipmakers slowed down production of semiconductors for vehicles.

With many locations’ Covid-19 restrictions easing recently, demand for vehicles has rebounded stronger than expected. Car companies are now trying to ramp up production, but the chipmakers are busy fulfilling orders from other industries.

Semiconductor shortages are being felt far and wide. In its recent earnings reports, Sony warned that the situation means it is struggling to increase production of the PS5.

Image credit: Jenson, snapper8S8

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https://www.techspot.com/news/88536-automakers-scaling-back-vehicle-production-chip-shortages-bite.html

 

[toooooot]

Maybe it was not such a good idea for entire world to buy from a single chip maker.
Perhaps, with some support from their governments, companies that come in a second and third places can still survive and prevent shortages and price spikes.

 

[BadThad]

They make too many cars already, the used market is plentiful and makes a million times more sense when you consider the extreme depreciation of new cars.

NO to government involvement! Why do you people turn to government for answers? If you do, you're a slave to the political masters that don't know squat about running a business. A smaller, less powerful government means prosperity for all!

 

[mbrowne5061]

Maybe it was not such a good idea for entire world to buy from a single chip maker.
Perhaps, with some support from their governments, companies that come in a second and third places can still survive and prevent shortages and price spikes.

Which single company?

They make too many cars already, the used market is plentiful and makes a million times more sense when you consider the extreme depreciation of new cars.

NO to government involvement! Why do you people turn to government for answers? If you do, you're a slave to the political masters that don't know squat about running a business. A smaller, less powerful government means prosperity for all!

Who mentioned government intervention?

 

[toooooot]

Which single company?


Who mentioned government intervention?

TSMC most likely

 

[Uncle Al]

Ahhhhhh ...... the advantages of my old 1965 F-150 .......

 

[VitalyT]

Who needs cars in the middle of all this? I barely use mine, just for product shopping, and bought a bicycle 1 month ago, after not having one for 20 years, to keep those extra pounds in check, after all the work from home.

 

[Neatfeatguy]

So....are the car dealerships going to be raising prices on cars by upwards of 40% or more like computer hardware companies are doing when it comes to GPUs?

 

[candle_86]

You know what's no in short supply carburators and the engines they power

 

[RichEQ]

It's this right?
I notice Tesla is not on the list of companies scaling back because of chip shortage and their cars probably have more chips than most?
Are these companies trying to deflect from other issues? ... Dunno.. just a thought...

 

[Sedziwoj]

Maybe it was not such a good idea for entire world to buy from a single chip maker.
Perhaps, with some support from their governments, companies that come in a second and third places can still survive and prevent shortages and price spikes.

Problem is not they buy from one company, but they cut costs, and limit orders too much. Now when they try to make them back, they have not place. It is problem with short time thinking in car companies, not that is one supplier.
PS all cars (excluding Tesla) have sits from one company, and most don't see it as problem. As most PC had all CPU from Intel.

 

[Tantor]

It's this right?
I notice Tesla is not on the list of companies scaling back because of chip shortage and their cars probably have more chips than most?
Are these companies trying to deflect from other issues? ... Dunno.. just a thought...

True. I think it's because it's all a load of smoke and mirrors intended to push internal combustion cars into extinction. Electric cars are ordained to replace IC cars.

The same nonsense is happening with guns in the US. There has been an unexplained ammo shortage for a year. Yet, during wartime, US industry had absolutely no problem ramping up production in a few weeks. Look at WW1, WW2. Within weeks of hostilities, they easily ramped up to producing hundreds of millions of rounds. And that's with 1930's manual machines, nothing like the high speed computerized machinery that's available today. An army of one million men, firing just a round a day on average, consumes 365 million rounds in a year.

Nope, many of these odd shortages are entirely intentional. They are the product of high level social engineering. By the way, most of the present political Folderol is also intentional. The challenge is to figure out what's really going on.

 

[BadThad]

So....are the car dealerships going to be raising prices on cars by upwards of 40% or more like computer hardware companies are doing when it comes to GPUs?

Next up....scalpers buying cars, marking them up 100% and selling them on ebay!

 

[Tantor]

Who needs cars in the middle of all this? I barely use mine, just for product shopping, and bought a bicycle 1 month ago, after not having one for 20 years, to keep those extra pounds in check, after all the work from home.

Yep, we drive less than 100 miles a month. At that rate our old Subarus will last 50 years.

I think the auto manufacturing industry will collapse fairly soon. Same goes for Boeing and Airbus. The reasonable thing is for industry to design and manufacture a 'people's car'. Make it modular, small, and easy to work on. I'm not sold on electric cars, there are many advantages to the old ic engines.

Funny how 1930's Germany did just that. It was called Volkswagen, which is German for 'people's car'.

 

[RichEQ]

True. I think it's because it's all a load of smoke and mirrors intended to push internal combustion cars into extinction. Electric cars are ordained to replace IC cars.

The same nonsense is happening with guns in the US. There has been an unexplained ammo shortage for a year. Yet, during wartime, US industry had absolutely no problem ramping up production in a few weeks. Look at WW1, WW2. Within weeks of hostilities, they easily ramped up to producing hundreds of millions of rounds. And that's with 1930's manual machines, nothing like the high speed computerized machinery that's available today. An army of one million men, firing just a round a day on average, consumes 365 million rounds in a year.

Nope, many of these odd shortages are entirely intentional. They are the product of high level social engineering. By the way, most of the present political Folderol is also intentional. The challenge is to figure out what's really going on.

No, that literally makes no sense.
What I was thinking was that, people are not buying gas cars in a pandemic. And those manufacturers are trying to suggest they're slowing production not because of a lack of demand but because there's no chip.

If there was a lack of chips, I'd expect Tesla to be the first car company to be affected.

American bullet shortage? I can only guess that there's a bunch of half whits over there that think they can fight a virus with a gun

 

[SixTymes]

No, that literally makes no sense.
What I was thinking was that, people are not buying gas cars in a pandemic. And those manufacturers are trying to suggest they're slowing production not because of a lack of demand but because there's no chip.

If there was a lack of chips, I'd expect Tesla to be the first car company to be affected.

American bullet shortage? I can only guess that there's a bunch of half whits over there that think they can fight a virus with a gun

literally, the cue to get ready to laugh or be perplexed.

 

[toooooot]

Yep, we drive less than 100 miles a month. At that rate our old Subarus will last 50 years.

I think the auto manufacturing industry will collapse fairly soon. Same goes for Boeing and Airbus. The reasonable thing is for industry to design and manufacture a 'people's car'. Make it modular, small, and easy to work on. I'm not sold on electric cars, there are many advantages to the old ic engines.

Funny how 1930's Germany did just that. It was called Volkswagen, which is German for 'people's car'.

"Easy to work on" desired by 5%, the rest dont even know how to replace a flat tire. And lets face it, we who fix our own cars, find how to regardless of complexity it takes

 

[Underdog]

Next up....scalpers buying cars, marking them up 100% and selling them on ebay!

They're already doing it. Not with new electric cars, but older, simpler, more desireable ones that can be fixed without the need for a nerd with a laptop.

 

[Gastec]

True. I think it's because it's all a load of smoke and mirrors intended to push internal combustion cars into extinction. Electric cars are ordained to replace IC cars.

The same nonsense is happening with guns in the US. There has been an unexplained ammo shortage for a year. Yet, during wartime, US industry had absolutely no problem ramping up production in a few weeks. Look at WW1, WW2. Within weeks of hostilities, they easily ramped up to producing hundreds of millions of rounds. And that's with 1930's manual machines, nothing like the high speed computerized machinery that's available today. An army of one million men, firing just a round a day on average, consumes 365 million rounds in a year.

Nope, many of these odd shortages are entirely intentional. They are the product of high level social engineering. By the way, most of the present political Folderol is also intentional. The challenge is to figure out what's really going on.

They are trying to justify the big price increases of automobiles, electronics, and everything else in the near future. That is what is going on. Or we are running out of resources on Earth faster than they predicted.

 

[Gastec]

Yep, we drive less than 100 miles a month. At that rate our old Subarus will last 50 years.

I think the auto manufacturing industry will collapse fairly soon. Same goes for Boeing and Airbus. The reasonable thing is for industry to design and manufacture a 'people's car'. Make it modular, small, and easy to work on. I'm not sold on electric cars, there are many advantages to the old ic engines.

Funny how 1930's Germany did just that. It was called Volkswagen, which is German for 'people's car'.

We will also collapse fairly soon into death. Or maybe you are young and hope to live a long time. Also there is a key word missing between 1930's and Germany. I for one, after years of Communism, I am sick of anything that starts with "people's". The fact that it's again attractive to young "progressive" hipsters is sickening.

 

[mbrowne5061]

TSMC most likely

What chips do auto manufacturers use that are single-source from TSMC (who is a fab warehouse, not design house, I might add)?