The auto industry may be in for smoother sailing in 2022 after manufacturers cut 10.2 million vehicles from their production plans because of the global microchip shortage in 2021, according to estimates by AutoForecast Solutions.
More cuts are expected this year, but the latest AFS vehicle production forecast suggests that lost volume will be substantially lower in 2022.
AFS estimates the potential for lost vehicle volume at around 767,700 units globally in 2022, or about 7.5 percent of the total number of units axed last year as a result of the chip shortage. The semiconductor industry continues to raise production and work to fill pipeline shortages.
Already this year, about 47,300 units have been cut from production schedules, according to AFS. Europe led the way with about 23,600 cuts, followed by South American plants that lost about 13,800 units.
Last year, Asian auto plants outside of China took the biggest hit of any region, cutting more than 3.6 million units. North America followed with more than 3.1 million vehicles axed from factory schedules, with Europe coming in at nearly 3 million vehicles lost.