Title: A Microchip Might Be Why the New Car You Want Is Hard to Locate
Headings: A Microchip Might Be Why the New Car You Want Is Hard to Locate
A Microchip Might Be Why the New Car You Want Is Hard to Locate
Pandemic Pressure
Ford, FCA, Toyota, Subaru, VW Having to Adjust
Kinks in the Supply Chain

Content: By Colin Beresford
Jan 16, 2021
Rogelio V. Solis via AP
Automakers are facing a supply shortage of semiconductors, the technology used to make microchips, and are being forced to pause production on certain vehicles. In North America, Ford, FCA, Toyota, and Subaru have all had to adjust production schedules; outside North America, VW, Nissan, and Honda have had to do the same. The supply disruption could ultimately impact the availability of the affected vehicles, industry analysts told C/D.
Even as automakers adapted to the restraints of a pandemic, the challenges faced by suppliers prevented a smooth return to production after the six-week shutdown in the spring. And although 2020 is now behind us, many of the challenges persist. Now a microchip shortage is forcing automakers to adjust production schedules and, in some cases, pause production once again. Pandemic Pressure
Supplier Issues Hurting Restart of Car Production
U.S. Automakers to Extend Production Shutdown
With the consumer electronics industry claiming more and more chips to fulfill increased demand for electronics, automakers are lacking one small but crucial component to build their cars. " Semiconductors are becoming much more important across the entire value chain for a vehicle, and such is the case in more expensive vehicles with more technology, but in particular for electric vehicles," Gaurav Gupta, vice president analyst at consulting firm Gartner, told Car and Driver. The potential for a shortage of semiconductors—the technology from which a microchip is made—was first noticed in December, as warnings came from automotive suppliers Continental and Bosch. "Some of these modern vehicles have thousands of semiconductors . . .