Synopsis
The shortfall of critically needed semiconductors has forced the entire auto industry to cut output, leaving thin inventories at dealerships just as consumers emerge from Covid-19 lockdowns.
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Ford expects a $2.5 billion hit to earnings due to scarce chip supplies.
The global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis.
In a dizzying 12-hour stretch, Honda Motor Co. said it will halt production at three plants in Japan; BMW AG cut shifts at factories in Germany and England; and Ford Motor Co. reduced its full-year earnings forecast due to the scarcity of chips it sees extending into next year. Caterpillar Inc. later flagged it may be unable to meet demand for machinery used by the construction and mining industries.
Global chip shortage hits Apple, BMW, Ford as crisis worsens
Peter Vercoe, Bloomberg News VIDEO SIGN OUT
The global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis.
In a dizzying stretch of 12 hours, Honda Motor Co. said it will halt production at three plants in Japan for around five to six days next month; BMW AG flagged it will pause Mini car production at its Oxford, England, factory for three days; and Ford Motor Co. reduced its full-year earnings forecast due to the debilitating chip shortage, which it sees extending into next year.
Carmakers join tech giants in production cuts as global chip shortage worsens Honda and BMW to idle factories while Ford reduces its full-year earnings forecast 29 April 2021 - 10:28 Peter Vercoe Picture: 123RF/SASHKIN7
Sydney The global chip shortage is going from bad to worse with carmakers on three continents joining tech giants Apple and Samsung Electronics in flagging production cuts and lost revenue from the crisis.
In quick succession, Honda said it will halt production at three plants in Japan for about five to six days next month; BMW flagged it will pause Mini car production at its Oxford, England, factory for three days; and Ford reduced its full-year earnings forecast due to the debilitating chip shortage, which it now sees extending into next year.
The global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis. In a dizzying 12-hour stretch, Honda Motor Co. said it will halt production at three plants in Japan; BMW AG cut shifts at factories in Germany and England; and Ford Motor Co. reduced its full-year earnings forecast due to the scarcity of chips it sees extending into next year. Caterpillar Inc. later flagged it may be unable to meet demand for machinery used by the construction and mining industries.