Semiconductors pose an unwelcome roadblock for carmakers

THE SUDDEN unavailability a decade ago of cars in “tuxedo black”, “rugged brown” or “royal red” highlighted the vulnerability of the industry’s global supply chain. The abrupt closure of the only factory making a vital pigment because of its proximity to the tsunami-hit Fukushima nuclear plant in Japan affected most of the world’s big carmakers. A side-effect of a global pandemic has denied carmakers a more vital component. has left car firms unable to install the complex electronics that control entertainment systems, safety features and advanced driving aids. Many have cut assembly-line shifts. Some have temporarily closed factories. Ferdinand Dudenhöffer of the Centre Automotive Research, a German think-tank, estimates that the bottlenecks will dent worldwide production in 2021 by 5.2m cars, to 74.8m. Ford’s net profit fell by half in the second quarter, year on year, mainly owing to the chip crunch. Jaguar Land Rover expects sales in the three months to September to be 50% lower than planned. On August 3rd , created by the merger of Fiat Chrysler and PSA, which owns Peugeot and Citroën, said it would make 1.4m fewer cars in 2021 than expected. (A big Stellantis shareholder is a part-owner of ’s parent company.) Though car bosses agree the worst is over, shortages are likely to dent output in 2022.