General Motors Concerned Over Semi-Conductor Chip Shortage20
General Motors is sounding the alarm over an ongoing semi-conductor chip shortage that may force it to limit its production output in the future.
Today’s vehicles use an abundance of semiconductor chips for their various electronic systems, including powertrain control systems, advanced safety systems and in-car entertainment, among more. Automakers must compete with companies in the consumer electronics sector for the limited global supply of semiconductors, however, which may cut into their ability to maintain regular production output of certain vehicles.
According to The Detroit Bureau, GM, Renault, Nissan, Mercedes-Benz, Volkswagen and other major automakers have recently expressed concern over the worsening semi-conductor shortage. Additionally, Bosch, the world’s largest automotive supplier and a major manufacturer of electronic automotive components, has acknowledged that has been receiving “significantly fewer” chips than expected in recent months.
Other major suppliers, like Valeo and Continental, have expressed similar concerns as well, The Detroit Bureau reports.
Nissan recently express concern over the global semi-conductor supply after it said it would be forced to revise production output at its Oppama Plant in Japan due to semi-conductor shortage. The Oppama facility builds the Nissan Leaf EV, Nissan Note hatchback and Nissan Syplhy compact sedan.
“A global shortage of semiconductors has affected parts procurement in the auto sector,” Nissan said in a prepared statement released this week. “As a result of this shortage, the Oppama Plant in Japan will adjust production in January, reducing production of the Nissan Note.”
Compounding the problem was a recent fire at a major chip plant owned by Japanese company Asahi Kasei Corp in Japan back in October. Setting up a new chip plant can be complex and extremely costly, making a fire such as this a major setback for both the automotive industry and the consumer electronics industry.
Subscribe to GM Authority for General Motors production news and ongoing General Motors news coverage.
- Sweepstakes Of The Month: Win a 2023 Corvette Z06 Convertible. Details here.