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 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.
The tally of vehicle production cuts due to microchip shortages just rose by nearly half a million.
Another 75,300 vehicles were eliminated from schedules because of the semiconductor shortage, mostly at North American factories.
More than 100,000 vehicles were cut from North American production schedules because of the global microchip shortage last week, according to the latest AutoForecast Solutions report.
Automakers are still shaving back production plans due to semiconductor shortages, but the worst-case scenario for North America just got a tiny bit better.
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.
Toyota and Lexus dealers, who have been getting by for months with some of the leanest inventories in history, will see that trickle of vehicles dry up further.