Chip shortage in rearview mirror but car dealers still face other supply chain issues

SEMICONDUCTOR shortages are no longer holding back car production, but automakers are still struggling with fluctuating supply. As a result, control of supply chains – something the China brands have pursued – is turning into a significant advantage.

For most of 2021 and 2022, the global production of cars was hamstrung by a shortage of microchips. One estimate by S&P Global Mobility pegged semiconductor shortages as responsible for the production loss of 9.5 million light vehicles in 2021 and 3.5 million in 2022.

This difficulty appears to have been overcome, with semiconductor-linked production losses falling to an estimated 524,000 in the first half of 2023.