Vehicle production pressured by global semiconductor shortage

A global semiconductor shortage, attributed to the coronavirus pandemic, is placing pressure on vehicle production lines around the world.

At this stage, the impact on new-car deliveries in Australia is unclear, but the shortage has already paused vehicle assembly in Japan and the United Kingdom.

The silicon electrical circuits are used throughout a wide range of vehicle systems, including mobile phone integration, heads-up displays, autonomous driving aids, and infotainment.

According to the New York Times, the shortage was brought about after the technology industry turned its focus to making computer components amid forecasts that new vehicle production would plummet during the pandemic.

“Australia’s dealers experienced supply challenges for most of 2020 due to the effects of factory closures associated with the pandemic and it would be a shame if yet another factor contributes towards a sustained period of stock shortages,” a spokesperson for the Australian Automotive Dealer Association told CarAdvice.

“At this stage it is unclear what the effect of the semiconductor shortage will be and whether any particular makes and models will be specifically affected,” the spokesperson stated.

“Australia now imports all of its passenger cars leaving retailers and their customers at the mercy of long and complex supply chains”.

Source: CarAdvice | Global semi-conductor shortage threatens to further delay new car production

15 January 2021

© Copyright - MTA Queensland

MTA Queensland acknowledges the traditional owners of the land on which we live and work- the Yugambeh and Yuggera people. We pay our respects to elders past, present and emerging. In the spirit of reconciliation, we will continue to work with traditional custodians to support the health and wellbeing of community.