Dec 2022

Microchip Shortage: Recession Could Ease Crisis

Automakers expect industrywide microchip supply interruptions to force them to cut fewer than 3 million vehicles out of their 2023 production schedules, which would be a significant improvement from this year, according to the latest AutoForecast Solutions estimate.

The buoyed outlook can be chalked up to the slowly improving semiconductor supply as well as the possibility of a recession next year, which would diminish new-vehicle demand and reduce the number of vehicles automakers plan to build in the first place, said Sam Fiorani, AFS vice president of global vehicle forecasting.

Projections for loss by region are as follows:

– North America YTD – 1,651,300 (2022 Projected – 1,681,400)
– Europe YTD – 1,478,300 (2022 Projected – 1,524,800)
– Rest of Asia YTD – 817,000 (2022 Projected – 857,500)
– South America YTD – 222,000 (2022 Projected – 222,000)
– China YTD – 200,400 (2022 Projected – 215,100)
– Middle East/Africa YTD – 45,300 (2022 Projected – 47,700)
– Total YTD – 4,414,200 (2022 Projected – 4,548,600)