A worldwide shortage of microprocessors already has car manufacturers shutting down some factories and slowing others. The shortage hasn’t raised consumer prices in any measurable way, yet, and analysts have begun to speculate that it will ease in the second half of 2021. But fire is responsible for stopping production at a microchip factory in Japan. The company, Renesas Electronics, makes about 30 percent of the automotive sector’s microprocessors worldwide.
The consequences of the fire are far from clear. Bloomberg reports that it has automakers worried enough to dispatch “workers to the damaged site to help with recovery activities.”
A Honda spokesperson told reporters, “We are gathering information and trying to see if this will affect us or not.” Toyota and Nissan similarly said they are assessing whether their operations will be furthered slowed by the fire.
Seiji Sugiura, a senior analyst at Tokai Tokyo Research Institute, said that “It will probably take more than a month to return to normal supply. Given that, even Toyota will face very unstable production in April and May. I think Honda, Nissan, and other makers will also be facing a difficult situation.”
Several automakers have begun seeking creative solutions to the shortage. General Motors this month began shipping pickup trucks to dealerships with some chips missing. The company says they are no longer able to offer some features due to chip supply limits. Ram, meanwhile, has announced that it will build some Ram 1500 Classic trucks without crucial chips. It plans to add the chips to the parked trucks once the supply recovers.
Related:
- Auto Industry Asks for Government Help with Microchip Shortage
- Microchip Shortage Update: VW in “Crisis Mode,” GM Cuts 80,000 Cars
- Global Microchip Shortage Worsens, Stops More Car Production
- Two More Automakers Pause Production in Growing Microchip Shortage
