Title: Microchip Shortage Increasing Vehicle Lead Times - Operations - Automotive Fleet
Headings: Microchip Shortage Increasing Vehicle Lead Times
Operations
Microchip Shortage Increasing Vehicle Lead Times
What Has Caused this Shortage?
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Content: Microchip Shortage Increasing Vehicle Lead Times - Operations - Automotive Fleet
Operations
Microchip Shortage Increasing Vehicle Lead Times
January 28, 2021 • by Mike Antich •
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There is a global parts shortage for semiconductors and microchips used to control electronic components for a number of critical vehicle functions that is impacting vehicle production around the world. This shortage is causing OEMs to reduce, or in some cases even stop, vehicle production, as they find it more difficult to procure semiconductors and electronics. As a consequence, this global shortage of semiconductors promises to further increase lead-times for affected vehicle models. For example, during the week of Jan 25. 2021, production for the Ford Escape and Lincoln Corsair at Ford’s Louisville Assembly plants was stopped for the second time in the month due to the chip shortage. The plant was also down for the week of Jan. 11, 2021 due to the same shortage. But this semiconductor and chip shortage is a global phenomenon. For example: Subaru cut production at two auto plants – one in Japan and the other in Lafayette, Indiana. While there were production slowdowns, Subaru expects all production will be made up.