Is the Chip Crisis Showing Signs of Improvement?

North American auto assembly plants represented most production cuts because of the global semiconductor chip shortage.

Though there were cuts, the goods news is they were modest when compared to the production cuts earlier this year. And globally, there were regions in the world that did not make any further factor reductions, according to a report from AutoForecast Solutions.

The latest estimates show automakers reduced production schedules by 22,000 vehicles worldwide last week. North American plants reduced production by 19,000 vehicles while Europe reduced vehicle production by 3,000.

AutoForecast Solutions had projected that North America would produce 3.4 million vehicles in 2021.The firm now forecasts it will produce 3.1 million vehicles.

Gartner predicts the semiconductor chip shortage will extend well into 2022 and warns there could be a year’s lead time for wafer orders. Forrester, meanwhile, predicts the shortage will persist into 2023.
 

Originally posted on Auto Dealer Today