Hundreds of thousands of vehicles have been taken out of production in North America due to an ongoing microchip shortage. Vital for everything from a vehicle's onboard computer and infotainment system to important safety features like anti-lock breaks and stability control, the chips have been in short supply around the world for months. Many factors contributed to the shortage such as a fire at an automotive chip plant in Japan, tighter supply chains after the Ever Given grounding in the Suez Canal, as well as a lack of oil for the plastic used in chips due to the big freeze in Texas. The pandemic of course also played a roll with many automakers cancelling orders due to slacking demand for vehicles, a decision they are now regretting as the market recovers.
An AutoForecast Solutions report covered by Car and Driver reveals the extent to which North American automakers have been impacted by the microchip shortage. Ford has taken 346,616 vehicles out of production while General Motors has reduced its total by 277,966. When it comes to the worst impacted models, the Ford F-Series pickup comes first with its production reduced by 109,710 units due to the microchip shortage. 98,584 fewer Jeep Cherokees are planned, while Chevrolet Equinox production will fall by 81,833. With Intel CEO Pat Gelsinger recently remarking that the problem could take a couple of years to resolve, there is no light at the end of the tunnel just yet for hard pressed automakers.
