Day: March 26, 2021

NIO and Ford Idle Car Production Amid Chip Shortage

Chinese electric vehicle maker  (NIO) – Get Report and U.S. automaker Ford  (F) – Get Report are the latest automotive companies to idle production at some of their plants due to an ongoing shortage in semiconductor chips that has impacted global car and truck production.

NIO announced Friday it would halt production for five working days at its plant in Hefei, China. It also cut its first-quarter delivery forecast to around 19,500 vehicles, compared to the 20,000 to 20,500 vehicles it had previously expected.

That followed in Ford’s footsteps, with the automaker announcing Thursday it will idle production of its popular F-150 pickup truck at a plant in Michigan through Sunday due to the chip shortage. The carmaker had cautioned about the chip shortage affecting production following a bond sale earlier this month.

NIO and Ford are among several automakers that have been forced to

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Used vehicle costs to rise due to computer chip shortages

Get ready to pay higher prices for used cars.

A dearth of semiconductor chip production is cramping new-vehicle production , limiting the availability of certain models in the coming months and threatening to raise used-car prices as buyers hunt for alternatives.

The shortages of chips, a result of the pandemic, are rippling through the automotive industry, undercutting production at General Motors, Ford, Honda, Toyota and other companies.

The upshot is that the used-car market, in particular, is poised for significant disruption – likely in the form of higher prices.

A similar thing happened in 2020 when automakers were forced to temporarily stop the production of most new vehicles due to COVID-19 lockdowns. That drove more buyers into the used market, increasing prices.

“The used-car market went haywire,” says Ed Kim, vice president of industry analysis for AutoPacific. “I’m expecting to see more of the same thing year, but for a

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Government approach to EVs ‘a game of snakes and ladders’

The government has been criticised for its patchy and inconsistent approach to electric car adaptation with SMMT chief executive Mike Hawes declaring it “a game of snakes and ladders”.

a blue car parked in front of a house: Peugeot e-2008 EV

© Provided by Motoring Research
Peugeot e-2008 EV

Although the government has urged the phase-out of new petrol and diesel cars from 2030 – the most onerous target for any industry – recent cuts to the Plug-in Car Grant are the latest hurdle faced by the car industry.

While ministers say they are working with industry, said Mr Hawes, “for automotive, the policy is just ‘end the sale’.

“The government seems to have the automotive industry in its sights, but seems to have lost sight of the one vital player in this deal: the consumer.”

This is reflected in the take-up of electric cars, with private buyers registering just 4.6 percent of electric vehicles in 2020, compared to 8.7

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