Paris
What was initially downplayed as a brief hiccup in the supply of semiconductors looks more and more like a shortage that may last throughout the year in what would be a big blow to automakers.
They were planning to rev up production this year to meet an expected surge in demand from consumers as the pandemic wanes and to recover from last year’s losses.
But without enough chips those hopes are fading.
The shortage of chips has pushed automakers to idle production lines for brief periods when they temporarily run out of supplies.
Toyota, Volkswagen, Ford, Peugeot, Fiat, Jeep, Honda, Jaguar Land Rover and even the Chinese startup Nio have had to pause production in their factories in the past months.
Automakers have reduced the stocks of parts they keep on hand in recent years as part of cost-cutting measures, so delivery delays can quickly force an entire shutdown.
Renault CEO Luca de Meo told shareholders this past week that “semiconductor shortage could cause a drop in production volume this year of at least 100,000 vehicles.”—APP