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  2. Microchips
September 27, 2021 12:00 AM

The latest numbers on the microchip shortage: Loss projection passes 10M

The bulk of vehicles taken off production schedules were in the Asia-Pacific and North American regions.

Omari Gardner
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    The number of global vehicle production losses related to the microchip shortage surged by 576,500 vehicles last week, pushing the industry’s amount of projected lost volume past the 10 million mark, according to new AutoForecast Solutions data. 

    The bulk of vehicles taken off production schedules were in the Asia-Pacific (306,000) and North American (214,000) regions. 

    China accounted for the majority of Asia-Pacific losses, nearly 194,000 vehicles. About 112,000 vehicles were removed in the rest of Asia.

    Honda Motor Co. cut 115,000 vehicles in the U.S., 57,000 in Canada and 19,000 in Mexico. Stellantis had a net loss of 19,500 in North America, while Ford Motor Co. lost 3,300 units in two Canadian plants.

    AFS estimates the global industry has lost 8.9 million vehicles from planned production so far, and the potential lost volume is 10.15 million. 

    Last week, AlixPartners raised its estimate of lost auto industry revenue to $210 billion, up substantially from its May forecast of $110 billion. Meanwhile, Bloomberg reported that the Biden administration is considering invoking a Cold War-era national security law to force companies in the supply chain to provide information on inventory and sales of chips.

    The breakdown
     AnnouncedProjected
    North America2,909,0003,208,000
    Europe2,335,0002,795,000
    China1,814,0001,980,000
    Rest of Asia1,526,0001,780,000
    South America302,000325,000
    Middle East/Africa48,00062,000
    Total8,934,00010,150,000

    Source: AutoForecast Solutions Inc. autoforecastsolutions.com

    AutoForecast Solutions Inc.

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