Mar 2023

Microchip Shortage: North American Outlook Worsens

The number of vehicles cut at North American plants so far this year because of the microchip shortage more than tripled last week, according to the latest estimate by AutoForecast Solutions, which added about 343,800 vehicles to its forecast.

Automakers are front-loading their production cutbacks because of the ongoing shortage, which is expected to improve in the second half of the year, said Sam Fiorani, the company’s vice president of global vehicle forecasting.

Meanwhile, the outlook in most other markets improved from the previous week.

Projections for loss by region are as follows:

  • North America YTD – 478,400 (2023 Projected – 1,088,600)
  • Europe YTD – 131,500 (2023 Projected – 822,400)
  • Rest of Asia YTD – 21,500 (2023 Projected – 539,900)
  • South America YTD – 7,200 (2023 Projected – 121,900)
  • China YTD – 70,400 (2023 Projected – 188,100)
  • Middle East/Africa YTD – 3,200 (2023 Projected – 19,800)
  • Total YTD – 712,200 (2023 Projected – 2,780,700)