Chip Problem Continues to Lesser Degree
Report forecasts production cuts resulting from issue this year.
Most of the cuts will occur in greater Asia, outside of China.
IMAGE: Getty Images/gorodenkoff
The ongoing semiconductor microchip supply shortage will continue to cut into automakers' production this year, though significantly less than it did last year, according to numbers released by AutoForecast Solutions.
The automotive data and analysis provider forecasts that this year’s vehicle production cuts resulting from the chip issue will amount to about 2.8 million units, down about 36% from 4.4 million last year and more than 10 million in 2021.
AutoForecast expects that most of the cuts will occur in greater Asia, outside of China.
Chip supply has bedeviled carmakers since the dawn of the pandemic, though it has eased year-to-year, and inventories have improved accordingly.
Originally posted on Auto Dealer Today
More Showroom
California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →
My Mercedes in the U.S.
The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →
Used EVs Outpace New
While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.
Read More →