Steel Markets

Chip Shortage Continues to Impact U.S. Auto Output

Written by Michael Cowden

March 11, 2021

The semiconductor shortage that forced General Motors to extend assembly plant outages continues to impact production at other North American automakers as well.

Case in point: Toyota’s Tundra pickup truck assembly plant in San Antonio, Texas, where it’s not clear how long the production disruption might last.

autoThe chip shortage been an issue for Toyota since the week of Dec. 20. While the problem is no longer new, securing chips remains “a very fluid process,” and the Japanese automaker has limited visibility on how long the issue might last, a company spokesman said.

“Tundra production continues to be curtailed, and we expect this trend for several weeks to come,” he said.

Other outages have been shorter and more localized. Take Mercedes-Benz, which makes the GLS and GLE SUVs as well as the GLE Coupe in Tuscaloosa, Ala.

Because of the “ongoing supply bottleneck” resulting from the chip shortage, the Tuscaloosa plant suspended one day of production last Friday, a company spokeswoman said.

The plant is running again and trying to catch up from the temporary production reductions where possible, she said.

Despite the chip issue slowing automotive production, and spilling into the appliance industry as well, steel prices continue to march higher and to test new all-time highs.

By Michael Cowden, Michael@SteelMarketUpdate.com

Michael Cowden

Michael Cowden is managing editor for Steel Market Update. Cowden has covered the steel industry since 2007. He has since 2014 specialized in flat-rolled steel but has previously reported on steel long products, steel pipe and tube as well as aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago - where he was involved in launching AMM's daily hot-rolled coil index, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.

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