6 brands that have been affected by the global chip shortage

The pandemic has slowed almost everything to a crawl, due to health and safety restrictions certain aspects of the general commercial market have been hindered in fully delivering goods to people. Such is the case for microchips that can be found in almost every modern device. While this global chip shortage mainly affects the consumer electronics market, the car industry has also been affected as many of the newer models come with the latest technology that requires the use of these chips. With that said, here is a list of automotive brands that have been affected by the microchip shortage both locally and globally, along with the steps they have taken to try and beat the component shortage. 

Since these two automakers are sister companies we will treat them as one entity.  Hyundai and Kia have been affected by the semiconductor shortage. For Kia it hasn’t had to cut down on certain features for its vehicles, however, the automaker has had to suspend production several times in 2021 to ration out the chips that it currently has available. In the case of Hyundai, there has been no effect thus far on its feature availability for its vehicle line up and things are still going smoothly. The automaker did have to make a few production cuts earlier in 2021 when the pandemic was still in full effect to effectively utilize its stocked-up supply of chips. 

In the case of Mazda, it is still experiencing some delays with its local supply chain, especially in the Southeast Asian region. This was because its local suppliers are still normalizing their business operations amidst the lockdowns in several regions causing disruptions in the procurement of parts. In response to this, the automaker has chosen to suspend night shifts in its production facilities for two weeks, from October 11 to October 16 of 2021. It has also shut down operations at its engine plant in Ujina as well as its transmission plant in the Hofu Nakanoseki area. Mazda states that it will continue to strengthen its partnership with local suppliers to minimize the impact of the global chip shortage. 

When it comes to Toyota, the Japanese automaker has yet to adjust its range of vehicles to better suit the global microchip shortage. However, it has stated that it is currently experiencing production problems with its North American Plants. The automaker has already taken action to ensure that the impact of this shortage is minimized throughout its global operations. The situation for Toyota remains fluid as it already has reduced its production output for October of 2021.

As Volkswagen has many subbrands under its belt, the automaker has hit several supply bottle-necks through its many operations around the world. The German automaker has been successful in its efforts to minimize the effects of the chip shortage with only a couple of plants having to adjust their working times to properly ration out their component supply. While production has been lowered, a few changes have been made to the automaker’s models, but these changes are only for certain regions. 

In the case of Nissan, it looks like it’s doing well as the automaker has not removed any advanced driver assistance features from its vehicles.  It, however, has adjusted its manufacturing operations in October of 2021 due to the semiconductor-related parts supply. It has stated that it will continue to work closely with its partners to assess the impact of the supply chain issues and minimize disruption for vehicle deliveries to its dealers and customers. 

Similar to other automakers, Mitsubishi has also adapted to the chip shortage by balancing its component availability with customer demand. The automaker has stated that it is having problems sourcing particular sensors for its cross-traffic alert and blind-spot monitoring systems, as well as for its in-dash screens and monitors. With that said, Mitsubishi says that it will not remove or adjust any of the specifications of its vehicle that are equipped with these features. The automaker states that it will work together with its suppliers to ensure that it will be able to address the demand for its vehicles to get them into the hands of its dealers and customers. 

With all these in mind, it looks like these automakers are doing fine and have not resorted to anything drastic to keep up with the demand for cars. Models are still rolling off the line with complete features, albeit at just a slightly slower pace as many brands are restructuring their supply chains to make the process of making their popular vehicles more efficient. 

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