The Semiconductor Shortage and Its Impact on Manufacturing

The semiconductor shortage, which is expected to cost global manufacturers 4% of total sales for 2021, cutting US$60bn in revenue from the industry, has and continues to be a turbulent disruption for the automotive manufacturing industry. 

January

• Ford halts production of the Focus in Germany and its SUV plant in Louisville, Kentucky.
• Honda shuts its UK factory for four days.

February

• Renault hopes to limit its production losses to 100,000 units or less.
• Stellantis temporarily shuts down its Windsor Assembly Plant.

March

• Honda suspends five of its North America production plants.
• Stellantis temporarily closes five manufacturing plants in North America.

April

• Ford reduces its global production by 50% in Q2, and shuts six plants in North America.
• General Motors dropped from the No.1 automaker in North America for the first time since 1998, following several shutdowns. 
• Nissan expects its production to drop by 500,000 vehicles between April and September.
• Stellantis halts its production in Italy and is denied a request to issue an emergency order forcing NXP Semiconductors to provide the company with chips.

May

• Ford cuts its production of the Fiesta in Cologne. 
• General Motors cuts its production by 278,000 units. 
• Toyota halts operations at two plants in Japan.
• Jaguar Land Rover halts production at two UK plants.
• Hyundai suspends the production of semi-mid-sized SUV Tucson and the Nexo.

June

• Toyota suspends production in Japan.
• Nissan stops manufacturing vehicles in Kyushi and some models in Mexico.
• Jaguar Land Rover halts production in Slovakia, completing an overhaul of its supply chain to avoid further factory closures.
• Hyundai diversifies its supply chain looking to local firms for chips, and suspends production in Alabama.

July

• Ford limits its production at nine factories, cutting its production of the Fiesta in Cologne for a second time. The company expects its earnings to lower by US$2.5bn for 2021.
• BMW reports that 10,000 BMW and Mini brand vehicles cannot be manufactured due to chip shortages.

August

• Ford cuts the production volume of its Fiesta again at Cologne, as well as idling its production of the F-150 pickup. 
• General Motors shuts down production at two assembly plants.
• Nissan shuts its factory in Tennessee.
• Jaguar Land Rover’s lead time for 53 models extends to over a year. 
• Honda permanently closes its UK production plant after 35 years. 
• Mercedes reduces optional features to minimise delays.
• Hyundai shortens its working hours due to supply issues.

September

• Toyota cuts production by 40% affecting 14 factories in Japan and 27 out of 28 production lines. Up to 360,000 units are expected to be lost globally.