AFS: Global Auto Production Down by 300,000 Vehicles in Jan for Car Chip Shortage

SHANGHAI, Jan 30 (SMM) - According to the latest data released by the auto industry data forecasting company AutoForecast Solutions ("AFS"）, the global auto production has been cut by about 304,600 million units as of January 29 as a result of car chip shortage. The auto output in Europe reduced by 15,900 vehicles in the last week alone.

AFS predicts that the shortage of car chip will cause the total auto output this year to shed by 2.80 million units. The company believes that semiconductor shortages challenging the auto industry will remain unsolved in the coming months even if the supply of car chip improves.

"Capacity expansion for car chips will take time, which means that the auto production will continue to slow down in the coming months," said Sam Fiorani, vice president of AFS.

Nevertheless, General Motors seems to see a recovery of chip supply. On January 28, a senior executive of General Motors (GM) said that the company will restore 100% of its production capacity this year after going through last year's supply disruption caused by pandemic and chip shortages. Previously, GM had nearly 500,000 vehicles unfinished in need of some parts. This figure has dropped to "approximately 1,000" as of the end of January.

According to data from Susquehanna Financial Group, since June 2022, the average global chip delivery cycle (starting from order placement to chip delivery) has maintained a downward trend. In December 2022, the average chip delivery cycle worldwide is about 24 weeks, shortened by 8 days.