A global shortage of microchips is curtailing the production of many cars, but automakers have been making careful decisions to reduce the impact on their most popular models. But, they may be losing flexibility to do that. Ford will limit production of two of its popular SUVs, the 2021 Ford Explorer and Lincoln Aviator.
The factory that builds the two midsize sport utilities is not shutting down entirely. Instead, it cut two of its three shifts for at least a week. The move comes after Ford indefinitely shuttered a factory building the smaller 2021 Ford Escape and Lincoln Corsair SUVs.
The average new car contains between 50 and 150 processing chips. These circuits are crucial to everything from engine timing systems to entertainment displays. But a one-two punch left the auto industry with tight supplies. Chip manufacturers shut down some of their plants as the COVID-19 crisis hit. Meanwhile, consumers worldwide went on an electronics buying spree to keep themselves entertained and effective while working and studying from home. This surge in consumer electronics took much of the available supply.
There is some hope for a reprieve – Taiwan Semiconductor Manufacturing Co, the world’s largest silicon chipmaker, promises that it will try to reallocate production to meet the automotive industry’s demand this quarter. But, for now, at least Ford, Honda, Nissan, Mercedes-Benz, Stellantis, Subaru, and Volkswagen have all stopped or slowed production of some vehicles.
We have yet to see significant price changes caused by the restricted supply of cars but will continue to cover the issue so that car shoppers can plan accordingly.
