Shortage of Computer Chips is Now Impacting Production Lines of Automakers

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As per the recent reports, the entire world is now running out of computer chips. While the shortage of computer chips is affected all technological companies, the automaker industry is taking most of the hit. As a result of the shortage of computer chips, the automaker companies are facing a lot of delays in delivering vehicles to companies and owners.

The automaker companies have reported that most of the delays they are facing are with SUVs and full-size pickups.

Ever since the shortage of computer chips started, the automaker companies started using the chips they had in stock for any emergency situations. The companies have stated that they used the chips hoping that soon the supply will get back to normal. The companies revealed that they didn’t want to delay the process of manufacturing their highly demanded vehicles.

However, the shortage of computer chips has even worsened in recent months and concerns are raising all over the world. The companies such as Stellantis and Ford have stated that they are now facing huge delays in delivering pickups to their dealers.

The executives of both companies have stated that in order to deal with the shortage, they were focused on manufacturing vehicles that were in high demand and offered higher profit margins. However, even keeping up with this strategy is now becoming difficult for the companies to maintain.

In order to deal with the current problem, Ford came up with a temporary solution so that its sales of highly-demanded vehicles are not jeopardized. The company officially announced that it had removed some of the chips that were needed in its best-selling vehicle, which is F-150 pickup.

However, the company is not going to deliver/ship them to the dealers, and instead, it is going to park them until the supply of the chips gets back to being normal.

Ford has also announced that it has also cut down the shifts that it had arranged at one of its Truck manufacturing Plants in Kentucky. Normally, the Truck Plant would have three different shifts for manufacturing the trucks and pickups. Now, the company has cut one shift and is utilizing the other two to carry out the manufacturing of the vehicles as normal.

On the other hand, Stellantis is also following the same procedure in carrying out the manufacturing of its most demanded vehicle, the Ram 500 Class Pickup. Stellantis is an automaker that was formed after a merger between PSA Group from France and Fiat Chrysler.

Stellantis has claimed that so far, it is facing no problems with its Ram pickup as the production of the vehicle is going as normal. The company has claimed that it currently has 143 days’ worth of Ram 1500 Classics available that it can supply on demand.