John Irwin

Automakers just cut an additional 47,800 vehicles from their global production schedule due to microchip shortages.

Some auto companies are automating aspects of their parts purchasing processes in an attempt to give their purchasing teams more time to manage increasingly complex supply chain issues.

About 76,000 vehicles are added to AutoForecast Solutions’ tally of the number of units cut from automakers’ production plans because of the microchip shortage.

Automakers cut 32,900 vehicles from their global production plans over the last week as the microchip shortage continues to weigh on vehicle output, according to the latest estimate by AutoForecast Solutions.

More than 3 million vehicles have been axed from automakers’ production schedules worldwide so far this year because of the microchip shortage — but that might be an undercount.

Parts shortages and heightened commodity prices are putting the squeeze on Tier 2 and Tier 3 suppliers, often forcing them to go to their Tier 1 customers to renegotiate pricing or ask for a cash infusion — or else risk going out of business entirely.

Just 6,800 units were added last week to AutoForecast Solutions’ tally of vehicles lost to the semiconductor shortage, one of the lowest weekly totals since the start of the microchip crisis.

Stefan Hartung, Robert Bosch's global chairman, says the supplier will look like a different company in 15-20 years as it adapts to electrification and increased automation.

The chip shortage just reared its head again in North America, knocking more than 100,000 more vehicles out of production.

The pace of production cuts stemming from the microchip shortage continued to slow last week as automakers and suppliers signal optimism that the crisis is easing.

Magna reported a US$156 million net loss in the second quarter as the Canadian supplier giant grappled with higher commodities and energy costs and the impact of the Russian invasion of Ukraine.

More than 230,000 vehicles have been dropped from European factory production schedules over the past three weeks because of microchip shortages.

Automakers and suppliers are creating oceans of new data that need to be managed and analyzed. Who better to partner with than Google, Microsoft, Amazon and other global giants of cloud commerce?

Two years of disruptions caused by the pandemic, the microchip shortage and a wide range of supply chain challenges are prompting automakers and suppliers to pursue a better sense of where their parts are.

About 27,700 vehicles were removed from production plans over the last week, most of them in Asia, according to the latest estimate by AutoForecast Solutions.