Steel Markets

Chip Shortage Update: Auto Outages Narrow in November

Written by David Schollaert

November 5, 2021

Production disruptions from the semiconductor chip shortage across the U.S. automotive landscape are little changed from Steel Market Update’s mid-October analysis.

The widespread stoppages and assembly cuts were piling up through October and into November, but the latest feedback from automakers suggests the shortage may be easing.

Last month AutoAssembly2 Toyota announced plans to cut its North American vehicle production by 45,000-55,000 in November because of supply chain disruptions. Since then, further assembly curtailments have not been reported, but improvements may be on the horizon with December’s outlook report to come later this month.

“Nothing new to update on… but things are getting better each month now, so that’s a great trend to see,” said a company spokesperson.

The trend was not exclusive to Toyota. SMU obtained similar reports from other major U.S. carmakers.

Stellantis’ North American plants are running unchanged this week, and no near-term cuts are expected. The same is said of Daimler. Aside from GM’s downtime at its Ramos Assembly in Coahuila, Mexico, running through the week of Nov. 15, and impacting the production of its Chevy Equinox as reported last month, no changes or updates were expected, said a company spokeswoman.

Nissan confirmed a minor adjustment to November production schedules was planned at its assembly plant in Smyrna, Tenn., but no disruptions were expected. It’s Canton, Miss., operations aren’t affected, said a company spokesperson.

“In Smyrna, we continue to react to the ongoing semiconductor supply shortage,” the company spokesperson said. “The team has made minor adjustments – no major details or impact to share.”

For Honda Motor Co.’s North American operations, the standard media response remained in effect. The carmaker continues to manage supply chain issues related to the global pandemic, port congestion, and the microchip shortage.

The company noted that some of its North American operations have adjusted production based on parts supply during the week of Nov. 1. The Japanese automaker indicated that the situation remains fluid with further adjustments expected, however, no specific plant or model information would be provided.

A spokesperson for Ford Motor Company could not be reached for comment.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

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