shortage

Car seat foam shortage threatens to derail auto production, report says

2021 Chevrolet Trailblazer

You have to have seats to build a full car.


Chevrolet

Automakers continue to suffer through a semiconductor shortage, but there may be another issue brewing in the background: foam. Specifically, the foam that goes into millions of car seats we sit on every day when going for a drive. According to a report from Automotive News on Thursday, suppliers are “scrambling” to restart production following the devastating Texas winter storms last month.

The storms knocked power offline for millions of residents and produced water shortages statewide, and the state’s petrochemical plants didn’t go unscathed. Two sources spoke with the publication saying things are fine for now, but the problem may become serious in the coming weeks. One source cautioned this is a “threat” and not a “given,” depending on how the sector ramps up production again. But the semiconductor shortage has left automakers in a tough spot

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Big Automotive Chip Shortage Is No Surprise

A chip shortage forced Volkswagen to stop production of some bestselling brands; a VW line in Germany last month.



Photo:

Matthias Rietschel/dpa/ZUMA PRESS

“Car Makers Collide With Global Chip Shortage” (Page One, Feb. 13) correctly identifies the auto industry’s current supply-chain woes as a self-inflicted wound. From the electronics-manufacturing industry’s point of view, automotive is mostly a low-volume, high-mix customer segment, and it requires buffering through component distributors. Instead, the auto makers’ extreme focus on cost optimization and lean manufacturing meant eliminating these valuable supply-chain partners. The focus on lean should have been balanced with a pragmatic view on the extreme cost of idled automotive production lines. To shut down production lines for $80,000 vehicles because of a missing $2 microcontroller is catastrophic.

Products like semiconductors that have longer lead times and large production lot sizes need distribution for efficient buffering between the manufacturers

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Foxconn chairman says expects ‘limited impact’ from chip shortage on clients

TAIPEI – The chairman of Apple Inc supplier Foxconn said on Saturday he expects his company and its clients will face only “limited impact” from a chip shortage that has rattled the global automotive and semiconductor industries.

“Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Liu Young-way, chairman of the manufacturing conglomerate formally known as Hon Hai Precision Industry Co Ltd

“Therefore, the impact on these large customers is there, but limited,” he told reporters.

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Liu said he expected the company to do well in the first half of 2021, “especially as the pandemic is easing and demand is still being sustained.”

The global spread of COVID-19

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Car models most likely to be impacted by chip shortage

  • Car dealerships are already reflecting the slowdown in manufacturing due to the global chip shortage.
  • Shoppers may see higher prices and lower availability of certain car models.
  • Car companies began halting production in January and expect to lose billions this year.
  • Visit the Business section of Insider for more stories.

A global shortage of computer chips has caused shutdowns at several automotive manufacturing plants — and car dealerships are already reflecting the shortage.

Car shoppers can expect to see an impact in the availability of certain car models due to the chip shortage, as well as a price increase, according to Cars.com executive editor Joe Wiesenfelder. Dealerships may also be less likely to offer deals as supplies dwindle.

“Consumers in the market of considering buying a car should shop now because choices and prices could worsen over the next two quarters,” Wiesenfelder told Insider. 

Car companies began halting production

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