Shortage

GM might lose 90-year U.S. sales crown over chip shortage

Automotive News editor Nick Bunkley tweeted on October 1 that according to AutoNews data, General Motors “has been the largest seller of vehicles in the U.S. every year since passing Ford in 1931.” With automakers having turned in light car and truck sales data for the first three quarters of 2021, GM’s 90-year-run might not reach 91. According to AN figures, Toyota was 80,401 vehicles ahead when the October workday started. Worse, GM is so far behind its historic pace that it might only sell enough light vehicles in the U.S. to match its numbers from 1958. 

Meanwhile, the New York Times put a few more salient numbers to the pain GM and Toyota are enduring alongside the the rest of the industry. GM sold 33% fewer cars in Q3 2021 than it did in Q3 2019 during the dark days of the pandemic, 446,997 units this year as opposed

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Microchip shortage delays car repairs, increases auto sales

MADISON, Wis. (WMTV) – Over the past year, a shortage of microchips has impacted car manufacturing.

Paul Flogel is the Program Director for the Automotive Technology Department at Madison College. He says the tiny pieces are having a big impact.

“You talk about one small little thing, but it’s multiple small little things,” said Flogel.

He says computer technology in cars has grown steadily over the past 30 years.

“The same type of technology in your phones and home computers are in our vehicle. It’s the same type of thing,” said Flogel.

Mechanics around the Madison area are adapting and fixing what they can on cars.

“We deal with the shortages,” said Flogel. “We’ll modify and we’ll do things to make it happen.”

He says some repairs need the right parts.

“Sometimes it’s just a wait. That’s kind of the hard part because we’re not used to doing that,” said

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Chip shortage means vehicle inventory likely won’t recover until 2023

A world-wide shortage of microchips has forced automakers to slow or stop production of many cars. That has pushed car prices to record highs in both the new and used markets. Analysts have consistently predicted that the problem would ease in 2022. But now, a major chip maker is warning that it could last into 2023.

Backlog will take more than a year to clear

Japan’s Rohm Co.
ROHCY,
+3.41%
is one of the largest suppliers of microchips to the automotive industry. Its largest clients include Toyota
TM,
+1.72%,
Ford
F,
-0.92%,
and Honda
HMC,
+1.18%.

“All of our production facilities have been running at their full capacity since September last year, but orders from customers are overwhelming,” Rohm CEO Isao Matsumoto told reporters in August. “I don’t think we can fulfill all the backlog of orders next year.”

Why this happened

The average new car contains

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VW, Ford, Daimler fear chip shortage could persist for some time

Technicians work in the assembly line of German carmaker Volkswagen’s electric ID. 3 car in Dresden, Germany, June 8, 2021.

Matthias Rietschel | Reuters

Car manufacturers including Ford, Volkswagen and Daimler are still struggling to deal with the impact of the global chip shortage, with executives from each of the companies warning a lack of silicon is likely to remain a problem.

Volkswagen CEO Herbert Diess, Daimler CEO Ola Kallenius and Ford Europe chairman of the management board Gunnar Herrmann told CNBC’s Annette Weisbach at the Munich Motor Show on Monday that it’s hard to tell when the complex issue will be resolved.

Germany’s Volkswagen, Europe’s largest carmaker, has lost market share in China as a result of the chip shortage, Diess said.

“We are relatively weak because of semiconductor shortages,” he said. “We are hit more in China than the rest of the world. That’s why we are

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