Global car giants flag production falls as chip shortage grips
A string of global car giants warned over their production targets today as the global semiconductor shortage showed no signs of abating.
General Motors (GM), Toyota, and Honda all said that vehicle output would be lower than previously estimated in the second half of the year.
GM said that it would be about 100,000 cars short of previous targets for 2021. Chief executive Mary Barra said that the impact of the crisis would continue to be felt next year.
It also warned that it would have to shut a number of plants in North America until the shortfall abates.
Across the Pacific, Japanese giant Honda said that production would drop by 150,000 models this year, from 5m to 4.85m.
It has also been forced to suspend production at its plant in Wuhan due to a surge in Covid-19 cases.
Toyota has also seen a number of plants shuttered for the same reason, though it said that it did not expect sales to fall below previous predictions.
Yesterday both Stellantis and BMW also issued warnings over their production outlook, adding that the shortage will drag on into 2022.
Earlier this year, consultants Alix Partners said that the dearth will cost automakers $110bn in lost revenues this year alone.