industry

The Semiconductor Shortage Has Come for the Auto Industry

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The ongoing semiconductor shortage isn’t just hitting big-name tech companies like AMD, Intel, and Nvidia. According to multiple automotive manufacturers, the general manufacturing problems hitting the industry are now meaningfully slowing vehicle production.

“This is absolutely an industry issue,” Toyota spokesman Scott Vazin told the AP. “We are evaluating the supply constraint of semiconductors and developing countermeasures to minimize the impact to production.”

This is separate from the COVID-related issues that caused car manufacturers to idle facilities throughout 2020, and it’s creating constraints on companies as they attempt to bring factories back online. Toyota has slowed production on the Tundra, Ford pulled in some planned downtime for its Louisville facility, Fiat Chrysler has temporarily closed some factories, and Volkswagen has announced it’s facing component shortages and may slow production for this reason. Nissan hasn’t

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U.S. Automotive Industry

Car & Automotive,automotive industry,Car & Mechanical,Car & Classic,motorcycleLots of the adjustments occurring within the automotive market right this moment, together with tightened credit markets in a capital-intensive industry and increased government involvement are the most recent international challenges. Rideshare services and automobile-sharing choices are changing personal automobiles in densely populated areas, the IMF stated. Automobile saturation also poses a problem, as populations in developed markets are previous their most popular car-buying years, in accordance with WSJ. Oil consumption has elevated rapidly in the 20th and twenty first centuries because there are extra automobiles; the 1985-2003 oil glut even fuelled the sales of low-economy automobiles in OECD international locations. The BRIC international locations are adding to this consumption.

American vehicles are also an excellent alternative if you are looking for a dependable engine. American engines are sometimes not very environment friendly, largely giant engines with high fuel consumption. The chassis and suspension are often very outdated and … Read More

Brexit blow to car industry as EU rejects crucial UK plan to avoid export tariffs

The EU wants to prevent the UK being an offshore assembly hub – as it seeks to woo manufacturers across the Channel (PA)
The EU wants to prevent the UK being an offshore assembly hub – as it seeks to woo manufacturers across the Channel (PA)

Brexit has delivered another blow to the struggling UK car industry after the EU rejected a crucial UK plan to avoid tariffs on exports.

Ministers had asked for parts brought in from Japan, South Korea or Turkey to be treated as British, to qualify under strict rules-of-origin if a trade agreement is struck.

But, in a letter to car bosses, Britain’s chief Brexit negotiator has admitted he has failed to persuade the EU to accept the proposal – and “obviously cannot insist on it”.

It means exports now face tariffs unless the majority of their value originates from the UK or EU. Typically, the figure is only 44 per cent for a car assembled in this country.

The EU rejected the idea because it saw the UK

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No-deal Brexit and Covid threaten ‘double whammy’ for car industry

UK and European carmakers have warned a no-deal Brexit could put a £100bn dent in the region’s car industry in the next five years, adding to heavy losses already caused by Covid-19.

A letter signed by 23 trade groups across Europe urges the government to make a deal rather than default to World Trade Organization (WTO) rules.

It says without one, there will be a “catastrophic” rise in tariffs.

A government spokesperson said it was “working hard” to reach an agreement.

The industry has already taken a £90bn hit this year because of Covid-19, the SMMT added.

The UK left the European Union on 31 January, but will enjoy tariff-free trade with the bloc until the end of the year as part of the transition period.

But fears are growing that both sides will be unable to strike a longer-term trade deal by then.

The European Automobile Manufacturers Association (ACEA),

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