Although the current shortage of consumer electronics chip market has been greatly alleviated, the inventory backlog is difficult to digest. However, the global shortage of automotive chips is still tense, forming a confrontation with the consumer electronics chip market.
This has also led today’s global automakers to relieve pressure by continuing to reduce production. According to the latest report from AutoForecastSolutions (AFS), a data forecasting company for the auto industry, as of July 3, the cumulative reduction in the global auto market this year due to chip shortages is approximately 2.5 million vehicles.
Global automakers cut production by 167,000 vehicles last week due to a shortage of chips, the AFS said. Among them, the production of about 68,000 vehicles was cut in Europe, and about 36,000 in North America. Global automakers are forecast to cut production by 3.31 million vehicles by the end of this year due to a lack of chips.
AFS estimates that Europe is still the region with the largest reduction in vehicle production due to a lack of chips, with a reduction of 888,000 vehicles. North America’s production reduction is second only to Europe, with about 845,000 vehicles.
However, the production reduction plan is not enough to fully explain the full situation of the chip shortage. The reality is far more severe than the exposed situation, which is the deepest feeling of the automotive OEM. GM said in a regulatory filing last week that it produced 95,000 vehicles in the second quarter that were incomplete due to missing components.
Most of GM’s incomplete vehicles were produced in June. GM expects to have the vehicles fully installed and delivered to retailers by the end of the year, the document said. Ola Kaellenius, chief executive of Germany’s Mercedes-Benz, said last week that the global semiconductor shortage is expected to cover the whole of 2022 and continue into 2023. He said the semiconductor situation is very serious and will be a challenge for the entire industry this year and next.