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Chip Shortage Keeps Causing Chaos for Automakers

The chip shortage is continuing to affect the auto industry in a way that will still be felt months from now, with several major automakers still facing production stoppages due to the global chip scarcity. Earlier this week Ford indicated that it would extend a production halt at five plants in the U.S. and Canada, one that would last two more weeks, the Wall Street Journal reported. Production of the Ford Explorer and a number of other vehicles will be affected.

Chrysler parent company Stellantis also announced an extension of plant stoppages this week in response to the shortage, announcing temporary layoffs for workers at a Jeep plant in Detroit expected to last well into May, Bloomberg reported.

Earlier this week Mercedes-Benz parent company Daimler indicated that it would halt production at two plants in Germany amid the shortage.

“The current worldwide supply shortage in certain semiconductor components affected deliveries in the first quarter. Daimler anticipates that this shortage could further impact sales in the second quarter. Although visibility is limited at present, Daimler assumes some recovery in the third and fourth quarter,” the company cautioned earlier this month.

Jaguar Land Rover is also planning to pause plants in the UK this month, halting production at two of its main plants starting on April 26. The automaker did not give a restart date for the plants, though its Solihull facility is expected to continue operating without interruption.

The shortage is not confined to North America and Europe, as automakers in China are also experiencing delays in production even as the consumer auto market continues to pick up momentum.

Click here to read the full report from Jay Ramey at Autoweek.com.

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