Worldwide Chip Shortage Strains Auto Manufacturers (.PDF Download)

Feb. 1, 2021
Facing a persistent chip shortage, automakers are standing in line to claim a limited supply of chips that are making their way into the world’s supply chains.

A global silicon chip crisis is making life difficult for automakers right now as they scramble to shore up their supply chains and get the materials they need to build their vehicles. In January, Ford announced that it would halt production at one of its German plants, the “latest sign that a global shortage of computer chips is putting carmakers under increasing pressure and threatening their recovery from the pandemic,” CNN reports.

The automaker idled its factory in Saarlouis, Germany through Feb. 19 due to the chip shortage and weak demand for its vehicles. CNN says the plant makes Ford’s most popular car in Europe (the Focus) and employs around 5,000 workers. Earlier in the month, Ford closed an SUV plant in Louisville due to the shortage of semiconductors. 

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