Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Hyundai, Stellantis, General Motors (GM), and Ford have announced suspensions across their plants in a fresh slew of production cutbacks related to semiconductor chip shortages. 


Volkswagen’s Porsche AG is considering output reduction in the near term and the US is joining the growing number of countries that are planning to address measures to deal with the ongoing chip shortage next week. 



South Korean carmaker Hyundai plans to shut its Asan plant for two days starting Apr 12, as the chip shortage continues, the company announced to media on Friday. This round of shutdowns comes shortly after the company suspended operations at its Ulsan plant earlier this week.



Stellantis has also followed suit by announcing an extension of its Peugeot 308 plant closure Sochaux (Doubs) for the third week, starting Apr 12. The carmaker announced in late March that its Melfi, Italy plant will halt production for 10 days between Apr 2-12 due to COVID-19.


Porsche AG is considering a reduction in its output in the short term. While it may not halt operations completely, the company hasn’t ruled out the effects of the chip shortage on its near-term production.



In the US, major auto manufacturers GM and Ford have stated more cutbacks on Thursday. GM will halt SUV production at its Spring Hill plant starting Monday. The company’s plants in Mexico and Delta Township Lansing, Michigan, will shut down for a week from Apr 12. Another unit in Grand River Lansing, Michigan, will continue its downtime until Apr 26. GM’s CAMI and Fairfax units in Canada will extend their closure through the week of May 10. The company has forecasted a drop in profits by $2bn.


Ford will cancel production at three of its plants in Chicago, Flat Rock, and Kansas City starting next week. Its Ohio plant will continue on a reduced schedule. 


Government Action

Auto associations worldwide are urging active government intervention and the US is planning to address the global semiconductor chip shortage. Jake Sullivan, national security advisor, and Brian Deese, director of the National Economic Council, will lead a meeting next week as part of the government’s efforts. A local auto alliance had reached out to the government this week, calling for intervention from fears of reduced output in the US. 

Leave a Reply

Your email address will not be published.