93% think it is a big deal when the lack of chips affects vehicle supply

  • A new survey performed last month by Automotive News About the global chip shortage, almost everyone in the auto industry realizes that this is a big problem.
  • According to the survey today, 53 percent of respondents said they source their chips from outside the United States, and 55 percent are looking for alternative chip sources outside of the country.
  • Changes are of course dependent on temporary production breaks and a switch to models that are either in high demand or require fewer chips.

    The auto industry is fully aware of how bad the current chip shortage is. Anecdotally, this has been clear for a while. Jim Farley, Ford CEO, recently said the chip shortage was “probably the biggest supply shock” he has ever seen. Automotive News used this quote in a new poll Called from automakers and suppliers Investigation of the global chip shortageThis gives us a lot of survey data to back up the feeling that this is a big, big deal.

    Perh’s most surprising figure in the survey is that only – yes, only – 93 percent of respondents said the chip shortage will have a serious impact on the auto industry. The poll was conducted a month ago before recent estimates put the shortage’s impact on the auto industry at $ 110 billion in lost sales this year. But even in January the estimates were around $ 50 billion, which apparently wasn’t serious enough for 7 percent of those surveyed.

    There is also a feeling that the chip shortage will spread for most of the rest of the year. Almost three quarters of those surveyed, 72 percent, expect the chip shortage crisis to affect the industry for at least six months.

    Just a reminder that the shortage of chips used in cars, computers and other products was caused by the global demand for electronic goods that increased due to the coronavirus pandemic, as well as poor planning in the supply chain and weather issues. As the It was pointed out that a new vehicle can have up to 100 of these semiconductor chips on board. They are used (and required) in components from the touch screen to transmission.

    While efforts have been made in the United States to manufacture more semiconductors, newly proposed equipment will take time to build and produce chips. The survey gives us an insight into where automakers and suppliers get their chips from: 53 percent today get them from outside the US and 55 percent would like to get chips from outside the US in the future. Forty-eight percent said they would rather buy chips from local suppliers.

    Respondents were unsure which segments of the industry will be hardest hit by the shortage. Half (49 percent) said it will be the automakers, while 30 percent believe dealers and retailers will be hardest hit, and 23 percent said it will be the suppliers.

    If there is any ray of hope in the numbers, it is in the way the industry is adjusting to the situation. Almost half (42 percent) of automaker and supplier respondents said they have already made or are implementing changes to the way they mitigate supply chain risk, and 26 percent said they found alternative sources for the chips they needed to have. That means 74 percent of the industry hadn’t found a solution to the shortage itself by mid-April, but there are other ways to alleviate the chaos.

    As we previously reported, many automakers – 38 percent in the survey – have at least temporarily stopped production. Another third, 32 percent, have shifted production to vehicles or components that are less affected by the scarcity, and nearly half, 46 percent, have prioritized manufacturing high-demand products.

    The survey was conducted in mid-475 Automotive News Subscribers and readers who the publication said represent a “diverse sample of automotive professionals representing different companies and levels and areas of expertise in the industry”.

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