Semiconductor crisis cuts production in auto industry - Economist

The semiconductor crisis is still going on all over the world, in addition to the presence of problems and crises in the supply chains due to the impact of the Corona epidemic on the global economy, which has led to the damage of car manufacturers around the world.

Based on the above, Volkswagen expected that the global shortage of semiconductors will continue this year, despite expectations that indicate an improvement in the second half of this year.

In the same context, Ford announced that it intends to suspend or reduce production at eight of its plants in the United States, Mexico, and Canada next week due to restrictions on the supply of chips, and this comes a day after the company warned that the lack of chips will lead to a decrease in the volume of cars in the current quarter.

Ford's stock fell last week after the automaker reported lower-than-expected quarterly income and forecast a slower recovery in auto production for 2022 than rival General Motors.