Auto plants in the Asia-Pacific region will cut nearly 36,000 vehicles this week because of microchip shortages, according to estimates from AutoForecast Solutions. The majority of the losses are in China, with 33,631 vehicles being taken out of production. Another 2,362 are expected to be cut in the rest of Asia.
Meanwhile, North American factories are ramping up short-term production in case of a UAW strike this fall, said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. “This additional production has worked to obscure some of the potential losses from slow supplies of chips. If the strikes do occur, more chip-related losses and general supply chain shortages can be hidden by the reduced output,” he said in an emailed statement.
AFS’ production-loss estimates for full-year 2023 were lowered for North America, South America and Europe.
Source: AutoForecast Solutions Inc. autoforecastsolutions.com
