Just how serious is the ongoing global automotive chip shortage? In South Korea, those working to procure auto chips are being prioritized for COVID-19 vaccination and will no longer be required to undergo quarantine.
According to a recent report by Nikkei Asia, South Korea “business people working to secure supply of auto chips” can skip the country’s required two-week quarantine period for inbound travelers and have been prioritized for vaccination to help mitigate the impact of the chip shortage. Those traveling abroad for the purpose of buying auto chips, meanwhile, will have COVID-19 vaccinations waiting for them.
The measures begin in April. In a statement, the government shared that while its auto industry is faring well compared to other nations, “concerns about future production disruptions have increased.” Not surprising, considering 98% of the domestic auto industry’s auto chips are sourced from outside South Korea.
The Nikkei Asia report adds a Hyundai union source stating that the manufacturing of some of the company’s vehicles has stopped and that production schedules are now fluctuating. The Korean auto brand joins a growing list of global carmakers making operational adjustments due to the chip shortage, which includes Nissan, Honda, Volkswagen, and General Motors.
A month ago, Honda and Nissan announced they were lowering their 2021 sales targets by a combined 250,000 units as a result of the chip shortage. When do you think global supply will be able the catch up with the auto industry’s demand? Let us know in the comments.