recover

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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