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More Carmakers Halt Production Due to Semiconductors Shortages

Automotive companies are again stopping production due to the shortage of semiconductors, which has been going on for almost a year.

German carmaker Audi, part of the Volkswagen Group, will stop production at its headquarters in Ingolstadt and in Neckarsulm from Monday until the end-August due to lack of semiconductor deliveries, the company confirmed to Kallanish.

In September, the carmaker will be forced to significantly cut the production schedule.

“Our goal is to resolve bottlenecks as quickly as possible and to catch up as far as possible on vehicles that have not been built during the course of the year and the top priority is processing the high order backlog,” Audi says.

Russian carmaker AVTOVAZ is forced again to change the production schedule for the working week starting on 23 August due to the continuing shortage of chips from Bosch. “All three lines for the production of cars at the Tolyatti plant will be stopped throughout the week,” the enterprise says.

The work schedule for the week starting 30 August will be drawn up early next week. However, Avtovaz said that this problem will likely continue during the rest of the year.

The global semiconductor shortage has also hit this week Toyota Motor. Japan’s largest carmaker will reduce production in the country by 40% from 22 August to 17 September. The latest problem come after outbreak of Covid-19 infections in chip plant in Malaysia.

Last week, semiconductor shortages forced Nissan and Volvo to halt some production sites (see Kallanish passim).

Global semiconductor demand for automotive will be supported by a recovery in the automotive industry, higher semiconductor content in electric vehicles and sustained strong demand for consumer electronics and industrial goods, says Fitch Raitings.

Earlier this month, Japan-based semiconductor manufacturer Renesas said it expects semiconductor shortages for the automotive industry will continue until the middle of next year.

Global automotive production could rebound 7-9% on-year in 2021 but will be hampered by supply chain frictions, mainly the lack of semiconductors for OEMs, ING Bank said previously.

The disruption will cost automakers 3.8 million units in lost production in 2021, noted Fitch Ratings.

Svetoslav Abrossimov Bulgaria