chip

Car industry could take six months to recover from chip shortage

Carmakers have warned that the global microchip shortage that has brought automotive factories to a halt could continue to affect production for another six months as they called on the US government to step in.

The Alliance for Auto Innovation, an industry group that represents American car manufacturers, told the White House in a filing that the ongoing shortage could mean 1.3m fewer cars being made in the US than last year.

That would amount to around 10pc of the 12.9m vehicles produced in North America last year, according to industry figures.

A global shortage of chips that feature in cars’ entertainment units and power supplies, often only costing a few dollars, has shut down or slowed production lines around the world. Vehicle manufacturers cancelled orders in the early months of the pandemic last year, and when demand unexpectedly rebounded, struggled to secure enough supply as chipmakers had turned to

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Renesas Says Fire-Hit Chip Plant to Restart By Mid-April

Renesas May Complete Naka Plant Inspections Early

Photographer: Tomohiro Ohsumi/Bloomberg

Renesas Electronics Corp. said production at a semiconductor factory hit by a fire is on track to resume by mid-April, welcome news from one of the top providers of automotive chips amid a global shortage.

One of the company’s most advanced lines at its plant in Naka, north of Tokyo, has been halted since a fire broke out late on March 19. Production will resume after about a month, as Renesas had previously projected, Chief Executive Officer Hidetoshi Shibata said at a briefing in Tokyo on Tuesday.

A recovery to full production may take 100 days, he said, though progress in the damaged clean room is ahead of schedule. About three-quarters of the work in progress was undamaged by the fire, he added.

“We are increasingly confident in our chances of achieving the goal,” Shibata said in the online briefing.

Booming demand for laptops,

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NIO and Ford Idle Car Production Amid Chip Shortage

Chinese electric vehicle maker  (NIO) – Get Report and U.S. automaker Ford  (F) – Get Report are the latest automotive companies to idle production at some of their plants due to an ongoing shortage in semiconductor chips that has impacted global car and truck production.

NIO announced Friday it would halt production for five working days at its plant in Hefei, China. It also cut its first-quarter delivery forecast to around 19,500 vehicles, compared to the 20,000 to 20,500 vehicles it had previously expected.

That followed in Ford’s footsteps, with the automaker announcing Thursday it will idle production of its popular F-150 pickup truck at a plant in Michigan through Sunday due to the chip shortage. The carmaker had cautioned about the chip shortage affecting production following a bond sale earlier this month.

NIO and Ford are among several automakers that have been forced to

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Used vehicle costs to rise due to computer chip shortages

Get ready to pay higher prices for used cars.

A dearth of semiconductor chip production is cramping new-vehicle production , limiting the availability of certain models in the coming months and threatening to raise used-car prices as buyers hunt for alternatives.

The shortages of chips, a result of the pandemic, are rippling through the automotive industry, undercutting production at General Motors, Ford, Honda, Toyota and other companies.

The upshot is that the used-car market, in particular, is poised for significant disruption – likely in the form of higher prices.

A similar thing happened in 2020 when automakers were forced to temporarily stop the production of most new vehicles due to COVID-19 lockdowns. That drove more buyers into the used market, increasing prices.

“The used-car market went haywire,” says Ed Kim, vice president of industry analysis for AutoPacific. “I’m expecting to see more of the same thing year, but for

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