Semiconductor Crisis In The Automotive Industry May Last Until 2023 And Leave Some Vehicles Out Of Brazilian Dealerships

Executives from Stellantis and Intel Claim That the Chip Crisis in the Automotive Industry May Take Two Years to Recover and So Far More Than 1 Million Vehicles Have Been Out of Dealerships Just in the U.S.

The chip crisis in the automotive industry may extend far longer than expected, causing numerous vehicles to be left out of dealerships in Brazil and other countries around the world. This is what experts and even executives from Stellantis and Intel estimate.

Read Also

• Construction Industry Compromised by Steel Shortage and Rising Input Prices
• Stellantis Group Announces the Creation of 200 Charging Points for Electric Cars in Brazil
• Renault Aims to Launch Electric Car with Removable Battery to Solve Charging Time Delays
• Group Meets and Calls for Solar Energy for All, Holding a Protest in Front of Congress for Approval of Bill
• Stellantis States That Citroën Will Launch New Electric Cars in Brazil This Year

Executives from Stellantis and Intel Speak About the Chip Crisis

According to Stellantis CEO Carlos Tavares, who was the first to declare the chip crisis in the automotive industry, it is expected to persist into next year, and he believes that the continuation of the crisis will be such that, in his opinion, the additional production of chips will not be sufficient and will only complicate the arrival of products needed for vehicle construction in Western countries.

As a result, brands within the group, such as Jeep, Fiat, Chrysler, Dodge, and Peugeot, have chosen to send to dealerships those vehicles that have a higher profit margin. This has become a common practice in the automotive industry while vehicle production does not return to normal.

Meanwhile, Intel CEO Pat Gelsinger, who has also spoken on the subject, stated that the chip crisis in the automotive industry will continue into 2023. In his opinion, the biggest challenge is the delay in stabilizing production issues. According to Gelsinger, it will take at least two years for vehicle production to normalize, meaning difficulties will persist in 2022.

Ford Plans to Take Incomplete Vehicles to Dealerships

The current chip crisis in the automotive industry has been a headache for all vehicle brands. In Brazil, several factories have had to halt vehicle production, but the most affected by the crisis has been Chevrolet, which has not been able to deliver its Onix to dealerships for months and expects that production will only resume around mid-August.

However, in the United States, Ford has an even bolder plan. The company intends to sell its incomplete vehicles without the semiconductors, and if this occurs, the missing parts will be installed later. The multinational’s goal is to prevent their factories’ lots from becoming overcrowded and to expedite delivery of vehicles to consumers.

1.2 Million Lost Sales

The current crisis originated from a miscalculation at the onset of the pandemic last year. When the virus began to spread, several companies predicted that consumers would reduce their spending due to concerns about tough times ahead.

In North America, the countries have already lost about 1.2 million sales in the automotive industry due to the lack of semiconductor chips. In Europe, 875,000 sales were lost, and Asian countries such as Japan and Korea have seen over 770,000 vehicles out of dealerships. In Brazil, approximately 130,000 cars were lost in the first half of the year and another 30,000 in the rest of South America.