Automakers expect industrywide microchip supply interruptions to force them to cut fewer than 3 million vehicles out of their 2023 production schedules, which would be a significant improvement from this year, according to the latest AutoForecast Solutions estimate.
The buoyed outlook can be chalked up to the slowly improving semiconductor supply as well as the possibility of a recession next year, which would diminish new-vehicle demand and reduce the number of vehicles automakers plan to build in the first place, said Sam Fiorani, AFS vice president of global vehicle forecasting.
AFS estimates that 4.55 million vehicles will have been lost from automaker factory schedules this year, following the 10.5 million units that were axed in 2021.
About 4.41 million vehicles have been lost because of chip shortages, AFS said. That includes automakers cutting about 63,200 vehicles from their schedules this week alone.
More than half of this week’s losses will occur in Europe. AFS reported additional cuts in China (14,700 vehicles), the rest of Asia (8,600), North America (4,700) and South America (300).