A major earthquake in Japan threatens to exacerbate the ongoing global microchip shortage as the total number of vehicles removed from production plans this year surpassed 1 million.
The chip shortage continues to hammer away at global vehicle production as automakers await additional semiconductor manufacturing capacity to come online.
The number of vehicles cut from automakers’ production plans this year because of the chip shortage surged 42 percent from a previous estimate, according to AutoForecast Solutions.
Another 75,300 vehicles were eliminated from schedules because of the semiconductor shortage, mostly at North American factories.
North American factories took another 26,000 vehicles out of their production schedules last week, significantly more than companies were cutting at the beginning of the month.
Automakers and battery companies are spending unprecedented sums of money as they build out North America's EV supply chain.