Chip shortage payment: more than 450 thousand cars were not collected

Chip shortage payment: more than 450 thousand cars were not collected

February 15, 2021 0 By autotimesnews

According to analyst firm LMC, the semiconductor shortage in January and February alone cost the auto industry at least 450,000 vehicles.

Pete Kelly, managing director of LMC, said the problem will persist in the first half of the year, but ultimately likely won’t affect annual production. However, he said the chip shortage was different from other supply chain disruptions because the industry was competing with other bidders for semiconductor manufacturers’ products.

“This time around, the difference is that the lead times for additional products appear to be longer and there is still competition for that capacity from other industries such as consumer electronics,” Kelly said in an online seminar Thursday.

Kelly said the LMC currently predicts global production will fall 10% in the first quarter, up from a 5% forecast made in December. According to him, this means a total loss of 1.1 million units, of which from 600 thousand to 700 thousand due to a shortage of microcircuits, and the rest due to the renewal of restrictions related to the coronavirus.

Other analysts, IHS Markit, noted that 672,000 units will be lost in the first quarter due to chip shortages.

“It’s a truly global issue, but some places are doing better than others if they have better access to semiconductor supplies, like Japan,” Kelly said of the chip shortage.

Buyers will either wait for the car they want or buy another if the desired model is not available, he said.

Production in Europe is forecast to decline 17% in the first quarter compared to 2019, 10% in the second quarter, 2% in the third, and then increase 3% in the fourth quarter, Kelly said.