Semiconductor shortage forces carmakers to cut production

The Ford plant in Louisville, Kentucky and the Fiat Chrysler plants in Brampton, Ontario and Mexico are idle. Carmakers like General Motors, Honda, Renault, Toyota and Volkswagen are also noticing the shortage.

A global shortage of microprocessors and semiconductors is hitting the automobile industry hard. Many carmakers have slowed / shut down production due to this.

The Ford plant in Louisville, Kentucky and the Fiat Chrysler plants in Brampton, Ontario and Mexico are idle thanks to component shortages. Subaru has reduced production at most of their plants across USA and Japan. Other carmakers like General Motors, Honda, Renault, Toyota and Volkswagen are also noticing the shortage.

Honda has told the media that it could slow down production in February 2020, while the chairman of Daimler has said it’s too early to tell if Mercedes-Benz and Smart would have to slow down production.

Toyota has shut plants in China while Volkswagen has reported production issues at factories in China, Europe and the United States.

In India, Bosch has warned that it is facing a severe shortage of imported components. Bosch is one of the key component suppliers to the Indian auto industry.

In modern cars, almost all circuits are based on microprocessors and semiconductors – from the critical engine, gearbox, safety systems like ABS, airbags to others like Bluetooth, air-conditioner, electronic seats and powered tailgates among others. 

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