The automotive industry continues to feel the impact of the global chip shortage. According to a report by Bloomberg, IHS Markit expects the crisis to reduce worldwide car production by as many as 7.1 million units this year.
“In the third quarter alone, as many as 2.1 million units could be lost to the chip shortage,” the report read. Also, Bloomberg says that IHS Markit’s forecast doesn’t include Toyota’s latest production cuts yet.
To make matters worse, global supply is only expected to stabilize by the second quarter of next year, meaning that “the chip crisis is far from over.”
“The situation is still fraught with challenges,” said IHS analysts Mark Fulthorpe and Phil Amsrud in their official report. “We are also seeing additional volatility due to COVID-19 lockdown measures in Malaysia where many back-end chip packaging and testing operations are performed.”
To further complicate matters, the ongoing pandemic isn’t just affecting the chip shortage, but it has also led to temporary manufacturing stoppages in countries like Thailand and Japan. For example, the recent increase in Delta-variant cases has forced Toyota to halt its operations in Thailand.
Top Gear Philippines is now on Quento! Click here to download the app and enjoy more articles and videos from Top Gear Philippines and your favorite websites.