The semiconductor shortages have had a significant impact across a lot of industries. One hit the hardest has been the new vehicle market. Here are a few of the companies that have been the worst-affected:
Jaguar Land Rover
Certain models have been almost discontinued by the brand, which apparently is to catch up with demand for other models. Waiting lists for popular Range Rovers are over a year long, with sales suspended in some markets. There will be some production decreased so more resources can be used for popular models.
The company was forced to cut its annual output target since production was lower than expected in the second half of the year. Currently demand is still higher than supply, so factories have been forced to shut on certain days. Supplies of Corolla, RAV4, and Yaris are supposedly the most affected.
Similarly to Toyota, Ford was forced to cut production at several factories, and things haven’t improved much since. Ford’s CFO said he didn’t think any “significant relief” was coming. Ford’s CEO said both semiconductors and EV battery materials were in high demand, and would be for the next decade.
In late 2022 Volvo announced the temporary closure of one of its factories. The company’s biggest shareholder has also been affected by shortages, with its profits allegedly falling by 55% in the first half of 2022.
Honda’s profits were mostly due to the weakening value of the yen, making its results seem more positive. These skewed results were mostly due to the chip shortage, with 3.8 million vehicles predicted to be cancelled in 2022. This is, however, a huge improvement on the 11.3 million cancelled in 2021.
The executive vice president of Honda said he doesn’t believe the worst of the shortages has passed. The American production of CR-V and Civic models were severely affected.
The amalgamation of Jeep, Dodge, Alfa Romeo and Fiat has been dealing with shortages since its inception. The company is currently overhauling the entire line-up to work towards a majority of low-emission vehicles.
Thanks to this, Stellantis is in need of more semiconductors than ever. However, apparently profits rose in Q3 2022, with sales of battery electric vehicles rising by 40%. If this continues, things may slowly begin to improve for the company.
The company have said they have around 150,000 unfinished cars in need of semiconductors. Because of ‘geopolitical developments’, namely tensions between China and the US, it believes shortages will continue for a year minimum.
Nissan went from predicting the sale of 4 million units to 3.7 million in 2022. This, they said, was down to China lockdowns and general semiconductor shortages. Production issues have been relatively localised, with China production falling by 23.5%. This balanced the gain in output at Nissan’s other factories.
Nissan has been trying to use alternative chips and dual sourcing to bypass some of the current shortages. If this is successful, there may be a positive outlook for the company again shortly.
Mazda was reportedly struggling so much in November 2022 that they couldn’t even predict output for the following two weeks.
Things have not gotten much better, with predictions that supply will be limited until the end of 2023. It also predicted the lowest-priced car trims will see the strongest growth thanks to the looming recession. However, Mazda expects a rise in profits this year thanks to the struggling value of the yen.
The American company has allegedly 95,000 unfinished vehicles waiting for semiconductors. This is harming its storage and sales, and will continue since the unfinished vehicles are those in high demand.
Despite not meeting demand, GM is still predicting strong sales and fewer supply disruptions in 2023.
Many companies expect the shortages and supply chain issues to continue throughout 2023. Some are hopeful, however, that as supply eases, so too will the financial pressures they currently face.
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The information in this article has come from various sources, including Slash Gear’s article, Car Companies That Were Impacted Most By The Semiconductor Shortage.