After Ford, Nissan, BMW, Toyota Is Cutting Production By 40%
The COVID-19 pandemic has crippled many industries around the globe. The automobile industry is one of those being affected the most. Automakers are having a hard time keeping up with their plans. One of the biggest challenges is the global semiconductor chip crisis. It slowed down the car production of many companies. For a while, things got better with the pandemic and its aftermaths. But now, the chip crisis has struck again, forcing the global automakers to scale back their vehicle production.
Global Chip Crisis Taking Down Automakers, One After The Other
Many big names in the global auto industry, General Motors, Ford, Nissan, BMW, and Renault, have already cut down their production in the face of the global chip shortage. Now, the world’s biggest automaker, Toyota, is facing the same fate.
Toyota had planned to make almost 900,000 cars in September. The number has now reduced to 540,000 (40% cutback). After the news broke on Thursday, shares in Toyota fell by 4.4%, their biggest daily drop since December 2018.
And you know what? The world’s second-biggest automaker, Volkswagen, is next. Volkswagen has recently issued a statement about expecting the semiconductor chip supply to be tight in the third quarter of the year and making changes in the production line.
Automakers In Pakistan Are Also Feeling The Heat
We have been hearing about the late car deliveries in Pakistan since the start of this year. The delay in deliveries is because of the global semiconductor chip crisis. Suzuki, MG, Prince DFSK, Changan, Kia, Proton, and Hyundai, are suffering from the chip shortage. Hence, their car deliveries are late.
We know that customers who have booked their cars are frustrated because of the late deliveries. But, turns out, it’s not the automakers’ fault. The semiconductor chips, a crucial part of every vehicle, have fallen short, and there’s nothing the companies can do about it. Guess we all just have to wait and hope for the best.