The ongoing semiconductor shortage is continuing to disrupt the automotive industry, with more manufacturers having to cut production…
Semiconductor Shortage Continues
The ongoing semiconductor shortage is continuing to take its toll on the automotive industry. Both Volkswagen and Daimler have been forced to cut their working hours at a number of production facilities. The former is slashing hours at its Wolfsburg factory next week. Herbert Diess, the company’s chief executive, said that the business was in “crisis mode” and that its profits in the second quarter would be affected.
Daimler will be rolling back production at its Rastatt and Bremen facilities, with one spokeswoman describing the situation as “volatile”. However, she stated that it was too early to make an overall forecast based on the impact of the shortage.
Half of Planned Production at Ford Affected
Ford was one of the first legacy automakers to acknowledge the realities of the semiconductor shortage. A spokesman for the company said, “the global semiconductor shortage is affecting automakers around the world as well as other industries, including consumer electronics companies”, He added, “Ford is concentrating on how to best use our allocation of semiconductors to deliver high-demand vehicles to customers”.
It’s known that the American automaker could lose out on half of its planned production for quarter two of 2021. Its factory in Turkey had been closed until June 13th. Production lines in Germany will also be operating at a reduced capacity; meaning delays for the likes of its Mondeo, Kuga, Galaxy and Transit Connect models. The Fiesta and Puma models will also be affected, but not to the same degree.
Due to the shortage, fleet decision-makers have been warned to expect some of the longest vehicle delays they will ever have faced; especially in the van sector. This will likely entail greater maintenance costs for aging fleet vehicles.
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