New data indicates chip supplies improving but not for every automaker

Despite supply chain shortages improving, new data indicates that some automakers still feel pinched more acutely than others. 

Honda informed shareholders that despite the growing semiconductor shortage, it had nonetheless lowered its expected global sales for the upcoming year. 

According to a report released this month by analysts at Bank of America Global Research using data from S&P Global, the scarcity has not affected BMW, Mercedes-Benz, Renault, or Nissan so far this year.

Due to the shortage, Volkswagen anticipates reducing its projected car output in the first quarter of this year by about 65,000 units. Geely, a leading Chinese automaker, could lose 50,000 units as it battles with the deficit on top of the COVID-19 repercussions in China, while Toyota is predicted to lose about 58,000 vehicles.

Since last year, the scarcity of chips has significantly decreased from its high in 2021. Bank of America reports that the industry has already stopped producing 200,000 vehicles globally this year, down from a peak of 3.4 million units in the third quarter of 2021 and from an average of 500,000 every three months since the third quarter of 2022.

AutoForecast Solutions predicts that this year, automakers will have cut roughly 350,000 vehicles from their plans, down from about 530,000 in 2022.

The industry is still 10 percent undersupplied overall with chips, down from about 20 percent last year, said Bank of America. Although there are still considerable challenges, the bank predicted that a solution would be reached by the end of the year.

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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