Hyundai and Kia Motors may face chip shortages in April 2021

Hyundai Motor and Kia Motors may face chip shortages in April this year. Since the second half of 2020, the problem of chip shortage has become the main theme of the semiconductor industry.

On March 26, the problem is getting worse, and industries including automobiles, mobile phones, game consoles, and PCs have been affected one after another.

Currently, global automakers are facing a shortage of chips, which has forced some automakers to suspend production. For example, due to chip shortages, General Motors recently announced the temporary closure of its plant in Lansing, Michigan that builds Chevrolet Camaro, Cadillac CT4, and CT5.

It is not expected to restart until April this year. Additionally, due to the shortage of automotive chips, automakers like Toyota, Volkswagen, Ford, Fiat Chrysler, Subaru, and Nissan have also been forced to cut production, and some have even been forced to suspend production.

As reported, due to chip shortages, Hyundai Motor and Kia Motors may encounter production interruptions in April. The two companies currently have 2 to 6 weeks of automotive semiconductor inventories. However, when their inventory is exhausted, their production may be interrupted.

According to reports, Hyundai has been adjusting the output of its lower-selling models, such as the Sonata, to save chips, but the output of the company’s popular models has not decreased. Additionally, the company is also negotiating with semiconductor manufacturers to obtain automotive chips.

At the same time, the company also obtains semiconductor-equipped auto parts from parts suppliers such as Bosch, Continental, and Hyundai Motors.

Previously, the global chip shortage and related shutdowns are expected to result in a reduction of approximately 216,000 vehicles that is equivalent to a reduction of US$2 billion in profits.

(Via)