Ford Motor’s poor quarterly results demonstrated that the worldwide semiconductor shortage is still causing problems for automakers, but some are more affected than others.
On February 2, 2023, Ford claimed that it had left billions of dollars on the table while still in its power, and it attributed a 100,000 vehicle volume deficit in the fourth quarter primarily to its inability to secure enough chips.
According to John Lawler, chief financial officer at Ford, “we’re going to see that there will still be volatility surrounding chips in 2023. I know there has been a lot of debate about ‘Well, the chip supply issue is over,’ but there are still capacity issues on the larger, older nodes, which are essentially the chips we use in the auto sector.”
According to Auto Forecast Solutions, since the chip scarcity began, nearly 18 million automobiles will no longer be produced by the end of 2023.
Mary Barra, the chief executive of General Motors, stated in October 2022, that there would be short-term disruptions going forward but that overall semiconductor supplies were improving as a result of agreements with chipmakers.
Volkswagen stated on January 10 that it anticipated 2023 production to continue difficult due to ongoing chip shortages but predicted a gradual recovery in supply over the course of the year.
Tesla announced in October of last year that it had been able to address some chip issues by updating its software to use other or fewer chips. Tesla has been commended for handling the chip scarcity better than most automakers.
Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at email@example.com.
Be sure to follow us on Facebook, LinkedIn, and TikTok to stay up to date.
While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.