AFS: Chip shortage will reduce global vehicle production by 832,000 units in 2022

Abstract: AFS estimates that the chip shortage will lead to 832,000 fewer global vehicles in 2022.

According to automotive News, a Jan. 17 report, forecasting agency AutoForecast Solutions (AFS) pointed out that the global chip shortage began to cause new shocks to automakers in Europe, North America and South America this week, with global production projected to shrink by more than 149,000 units this year.

AFS estimates that Ford Motor Co.'s Oakville plant in Ontario, Canada, and Flat Rock, Michigan, will reduce production due to chip-related problems. AFS estimates that the chip shortage will lead to 832,000 fewer global vehicles in 2022.

Bloomberg reported that Susquehanna Financial Group pointed out on the 4th that the chip pre-time in December 2021 increased by 6 days to 25.8 weeks compared with November, setting a record for the longest since statistics began in 2017. CNBC reported in December that Ford CEO Jim Farley said in an interview that the chip supply problem is not difficult to solve, as long as the production of electric vehicles (EVs) is prioritized in front of the internal combustion engine (ICE) models. The New York Times reported on the 8th that more and more car companies are aware that cars are becoming more and more digital, including Ford, Mercedes-Benz and other car companies recently said that they hire engineers and programmers to design chips and write their own software. MarketWatch reported that Argus Research analyst Bill Selesky pointed out on the 6th that the supply chain and chip shortage problems will soon be solved, bringing more revenue and surplus growth opportunities for Ford.

Ford rose 0.68 percent on the 14th to close at $25.19, a new high since July 31, 2001, and is up 21.28 percent so far this year, far outperforming the S&P 500 index and falling 2.17 percent over the same period.

The Federal Reserve Board (FED) announced on the 14th that the annual rate of assembly volume of motor vehicles (including cars and trucks) in the United States in December 2021 (adjusted for seasonal factors) fell by 3.1% from 9.58 million units in November to 9.28 million units, the first monthly decrease in three months.

Vehicle assembly volumes (seasonally adjusted) rose from 1.55 million units in November to 1.78 million units, and the yo-y rate in the fourth quarter of 2021 rose from 1.39 million units in the third quarter to 1.61 million units, a new high of 1.76 million units in the first quarter of 2021.

Source: MoneyDJ