Ford Motor Company executives expect the semiconductor chip supply to improve by next summer, while others think the shortage could last into 2024. Paul Jacobson, GM Chief Financial Officer, admitted that the automaker anticipates a more stable year for chip suppliers in 2022. Jacobson predicts that GM’s sales will fall by approximately 200,000 units due to low chip supply in the third quarter.
As the shortage continues, production cuts have become almost weekly for all automakers. Ford regularly announces temporary plants closing on an ongoing basis. The shortage has forced automakers to alter supply chain strategy drastically. The recent fire further impacted Ford’s production at a Renesas Japanese chip plant. Blue Oval executives claim that 75% of Ford’s 50% loss of Q2 output can directly be tied to the fire at the Renesas plant, which nine of the automaker’s Tier 1 suppliers rely on.
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