Semiconductor shortages continue to affect vehicle manufacturers’ production in the fourth quarter

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Global semiconductor shortages continue to affect automakers, with Renault Group, Stellantis, Skoda and Ford pausing production at European factories.

Renault confirmed to Automotive News Europe it would suspend production at one location in France and two in Morocco and Romania for several days this week.

While the Renault spokesman was unwilling to confirm details on which locations are affected, French news reports have said Dacia production is likely to have the biggest impact.

Stellantis also confirmed that it is suspending production at its Opel plant in Eisenach, Germany, as well as at its Opel plant in Zaragoza, Spain, which makes the Crossland X and Citroen C3 Aircross.

According to reports, production for Peugeot, DS, Jeep and Fiat models could also be affected in the next few days.

Skoda has also confirmed to Reuters it will cease production at two of its plants in the Czech Republic.

This will likely affect the production of Superb, Kodiaq, Karoq, SEAT Ateca, Fabia, Octavia, Kampiq, Karoq, Scala and Enyaq iV.

The shortage of semiconductors has had a lasting impact on vehicle production at many vehicle manufacturers. Brands like Ford continued production at the Cologne plant until the end of October.

Toyota, too, had to suspend production at its Czech plant in Kolin for certain periods of time in the past few months.

JLR was forced to suspend production at Halewood and Castle Bromwich due to semiconductor shortages earlier this year when BMW at its Mini production facility in Oxford.

Millions of production units lost

The semiconductor shortage has caused around 7.4 million units of global light vehicle production so far in 2021. according to estimates by data insight company IHS Markit.

Demian Flowers, IHS Markit Automotive Financial Analyst, said: “We are currently forecasting global light vehicle sales of 80.8 million units in 2021 (+ 8.3% year-on-year growth). without the losses that will be incurred in the fourth quarter. “

Production stoppages worsened sequentially over the course of 2021. The units lost in the third quarter (3.4 million) were more than twice as high (2.4x) as the units lost in the first quarter (1.4 million), and the malfunctions have increased in each of the last three quarters further aggravated.

Although IHS Markit expects the fourth quarter to bring a long-awaited slowdown in losses (in quarterly sequential terms) by the end of this year, the third quarter is likely a better proxy for disruption levels than the second quarter.

US OEMs are hardest hit

Since the beginning of the year, Ford and GM have experienced production stoppages of 25% and 21% of their 2020 volume, respectively.

Flowers said: “Premium car manufacturers (e.g. BMW, Volvo, JLR, Daimler) got away with it relatively lightly (lost between 1% and 7% of the previous year’s volume).

“Be aware, however, that the conscious choices made by OEMs toward more profitable models (and therefore positive offsets that are not accounted for in this analysis) can be biased.”


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