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: 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. Subaru said the year-end projected volume target is unchanged. Volkswagen has reduced production in China and Germany as it is having difficulty sourcing microchips for its electronic stability controls and ABS braking systems. Likewise, but for different reasons, Toyota reduced output of the Tundra at its San Antonio plant, and similarly FCA and Honda have reduced output at some of their plants due to the chip shortage. What Has Caused this Shortage? The shortage of semiconductors is occurring as a result of the companies that manufacture these products have allocated more of their production volume to meet the surging demand from the consumer-electronics industry, which saw sales of electronics products spike during the stay-at-home mandates created by the pandemic.