In an article published in Forbes on February 25, President Joe Biden signed “Executive Order on America’s Supply Chains” to address the global semiconductor chip shortage. Designed as a 100-day review of supply chain effectiveness, and citing that the United States accounts for 12.5% of semiconductor manufacturing, this Executive Order is a part of a continuous stream of policy assuming that “made in America” is good for America.
According to a new Reuters article, here are some updates on the on-going global chip shortage.
General Motors
GM has extended production cuts at four of their North American plants due to chip shortage. It’s being reported that the shortage could cut up to $2 Billion from their 2021 forecast.
Ford
The shortage is hitting production of the most popular truck in the world: F-150 pickup trucks. Ford could lose 10% to 20% of planned first-quarter vehicle production.
Volkswagen AG
The chip shortage will impact production at Wolfsburg and Kassel plants. VW was the first major automaker to announce that chip shortages were affecting production. Volkswagen is the world’s second-largest car company (behind Toyota).
Groupe Renault
The chip shortage could reduce Renault production by about 100,000 vehicles this year. Renault is a French automaker.
Honda
Honda has announced a cut in its 2021 sales target by 100,000 vehicles due to the chip shortage. Honda is fifth in sales worldwide.
Nissan
Nissan, Japan’s third-largest automaker and #10 in the world have lowered its target by 150,000 vehicles due to the chip shortage.
Tesla Inc
Elon Musk said Tesla’s plant in Fremont, California shut down for two days in February due to “parts shortages”.
Automotive Suppliers
Visteon
Visteon, a major automotive component supplier, has said uncertainty around the semiconductor shortages will lead to some plant closures in the first half of 2021 before things stabilize in the third and fourth quarters.
Stellantis NV
Stellantis‘ factories in Germany and Spain were impacted due to the programmable device shortage. Union sources told Reuters in February that Stellantis planned to slow production at its plant in Italy, and furlough 7,000 workers. Stellantis’ supported brands include Alfa Romero, Chrysler, Dodge, Jeep, Ram, Fiat, and Opel.
Other Industries
Sony
Sony’s Chief Finacial Officer Hiroki Totoki said it is difficult for the company to increase the production of the popular gaming system, the PS5, amid the shortage of semiconductors. The PS5 launched in November of 2020, and is one of the most popular systems in the world.