Here's How the Semiconductor Chip Shortage Has Impacted Every U.S. Automaker So Far

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A stock image shows the body of a car on a conveyor belt. Getty

Over the last year, automakers have been grappling with a shortage of semiconductor chips. Those chips are an integral part of the production of vehicles, with several chips needed for each unit.

The increased demand for chips as people started working from home during the COVID-19 pandemic, weather-related incidents and supply chain bottlenecks have all contributed to the shortage.

Automakers and analysts say that the trend is likely to continue into 2023, which has led some OEMs to stockpile chips and decrease output.

In a recent interview with Newsweek, Dr. Charles Fine, a professor at MIT's Sloan School of Management and a supply chain expert, agreed.

"A new semiconductor factory costs about $20 billion to build and has a lead time of several years to get up and running," he explained. "My sense is that the semiconductor industry is running at full tilt and still not producing all of the chips that are in demand. So, it's going to require new capacity and that new capacity can't be brought online instantaneously."

Moving forward, Dr. Fine says that automakers should divert some money they aren't spending on production to increasing their chip supply.

"In the short term, all you can do is try to buy your way out of the problem," Fine argued.

In the long term, he says, automakers will need to weigh the costs of bulking up and streamlining their supply of chips against the likelihood of the industry's current constraints happening again.

"That's where you begin to spend a lot of money insuring against something that might not happen for another 100 years," he said. "You have to worry about that. It has to be a worthwhile investment in the short term as well as the long term."

Here's a summary of how the shortage has affected major automakers.

General Motors

2021 Cadillac CT5
The Cadillac CT5 is currently the latest sedan that the company sells. General Motors

Earlier this month, GM announced that it would temporarily shut down most of its North American plants in the face of the chip shortage.

The plants would remain idle for a week or two to compensate for the lack of chips available.

The Arlington Assembly, Flint Assembly, Bowling Green Assembly and part of the Lansing Grand River Assembly plants would remain open. Those facilities focus on the production of full-size SUVs, pickups, and parts of its sports car lineup.

Orion Assembly in Michigan, the Chevrolet Bolt is made, will remain idle through the week of October 11th. The Bolt is under an all-encompassing recall over battery issues.

Since February, production of the Cadillac XT4 has been down at its Fairfax facility in Kansas. The company expects production to resume during the week of October 25th.

General Motors Canada's CAMI Assembly in Ingersoll, Ontario is also down until October. The Chevrolet Equinox is made there.

San Luis Potosi Assembly and Ramos Assembly in Mexico's production of the Equinox, Blazer and GMC Terrain are all scheduled as offline through the beginning of October.

Toyota

2022 Toyota Corolla Cross XLE
The Toyota Corolla Cross makes its way to U.S. dealerships in October. Toyota Motor Sales U.S.A. Inc.

On September 10th, Toyota announced that it would have to scale back production due to the spread of COVID-19 in Southeast Asia. The company would reduce production by approximately 70,000 units in September and approximately 330,000 units in October.

The company also revised its yearly production target to 9 million units, down from the previous estimate of 9.3 million.

Along with the pandemic, the company cited tighter semiconductor supplies, reducing the amount of chips available for production.

On September 17th, the company announced multiple days in October when production would be suspended in Japan. The cuts affect plants in Motomachi, Takaoka, Tsutsumi, Tahara, Miyata, Iwate, Miyagi Ohira, Fujimatsu, Inabe, Yoshiwara, Gifu, Toyota Industries Corp., Hino Motors, Ltd. Hamura and Daihatsu Motor Corp. Kyoto (Oyamazaki).

Those facilities produce the Toyota and Lexus branded vehicles including the Corolla, Camry, ES, GX, 4Runner, NX, UX and RX.

Ford

2021 Ford F-150
The Ford F-150 has historically been America's best-selling truck. Ford Motor Company

At the start of September, Ford announced that it would be slashing production on its F-150 pickup line and other vehicles in the face of the chip shortage.

The companies said that the production cuts would extend downtime already experienced at its Kansas City Assembly facility and the Kentucky Truck Assembly plant.

Kansas City Assembly produces the F-150 and the Ford Transit. Kentucky Truck Assembly makes the Ford Super Duty, Ford Expedition and Lincoln Navigator.

Stellantis

2022 Jeep Compass

On September 9th, Stellantis announced that its Belvedere Assembly Plant plant in Illinois and its Windsor Assembly plant plant in Ontario, Canada would be down during the weeks of September 13th and September 20.

The Belvedere plant makes the Jeep Cherokee and the Windsor facility produces the Chrysler minivan line.

The move was an extension of the company's idling of those facilities since August 30th.

Those delays persisted during the spring, with Stellantis warning that production schedules were being released on a week-to-week basis.

Production on the Ram 1500 at the company's Sterling Heights Assembly, in Michigan, was also halted at the start of September.

Honda

2022 Honda Civic Sedan Touring
Honda has redesigned the Civic for the 2022 model year. American Honda Motor Co., Inc

On September 6th, Honda released a brief statement about production adjustments.

"For the week of September 6, some of our North American operations will adjust production based on parts supply. This is a fluid situation so we will not be providing plant or model specific information."

In the United States, the company produces its vehicles at the East Liberty Auto Plant and Marysville Auto Plant in Ohio, Honda Manufacturing of Indiana in Greensburg, Indiana and Honda Manufacturing of Alabama in Lincoln, Alabama.

The CR-V, Acura RDX and Acura MDX are manufactured at East Liberty. Marysville produces the Acura NSX, Accord, Accord Hybrid, CR-V, Acura TLX and Acura ILX models.

The Indiana plant makes the Civic, CR-V and Insight. The company's Alabama workers assemble the Odyssey, Pilot, Passport, Ridgeline and J engine.

Two car plants and an engine plant, comprising Honda of Canada Manufacturing, call Alliston, Ontario home. El Salto and Celaya, Mexico serve as the production bases for Honda De México S.A. de C.V. Those plants produce the CR-V, Accord, Fit and HR-V.

Hyundai

2022 Hyundai Accent
The Hyundai Accent is the smallest car in the company's lineup. Hyundai Motor America

In June, the company announced a week-long shutdown at its Hyundai Motor Manufacturing Alabama plant in the face of the chip shortage.

The plant produces the Sonata, Santa Fe, Elantra, Tucson and Santa Cruz.

After that, in August, Hyundai said that it would cut production at the plant from Tuesday to Friday to accommodate the shortage.

Kia

2021 Kia Niro
The 2021 Kia Niro starts at 24,690. Kia America

The lack of chips has also caused intermittent stoppages at Kia Motors Manufacturing Georgia vehicle assembly plant.

The company's Sorrento, Optima and Telluride models are made there.

The first stoppage occurred in May, with the most recent one happening halting a day of production in early September.

All-in-all, the company says that it has lost about two weeks of production.

Jaguar Land Rover

2022 Land Rover Range Rover Sport Ultimae
Jaguar Land Rover

Due to manufacturing delays, Jaguar Land Rover has told fleet customers that delivery on ordered vehicles will take approximately a year to be completed.

Vehicles are still able to be ordered.

Back in April, the company temporarily suspended production at two factories in England, the Halewood Body & Assembly facility and its Castle Bromwich Assembly plant.

Halewood produces the Discovery Sport and the Range Rover Evoque. Castle Bromwich is used for Jaguar XE, Jaguar XF, Jaguar XJ and Jaguar F-Type production.

Mercedes-Benz

2023 Mercedes-Benz EQE
The EQE Is the company's all-electric take on the a Mercedes-Benz E-Class-sized car. Mercedes-Benz USA

Daimler, Mercedes-Benz's parent company, announced in late August that reduced working schedules at Mercedes-Benz plants would be extended at manufacturing plants in Germany and Hungary.

The company has German facilities in Affalterbach, Berlin, Bremen, Hamburg, Kamenz, Kölleda and Arnstadt, Rastatt, Sindelfingen and Stuttgart-Untertürkheim.

Hungarian production takes place in Kecskemét, Hungary.

Those plants make the C-Class, GLC SUV, A-Class, B-Class, S-Class, E-Class and EQS electric sedan.

Volkswagen

2022 Volkswagen Jetta GLI
The Volkswagen Jetta GLI is among the car's sportiest variants. Volkswagen AG

Another German automaker, Volkswagen, announced in August that it would reduce production at its Wolfsburg Volkswagen Factory in Wolfsburg, Germany facility to operate at one shift per production line at the beginning of September.

The facility produces the VW Golf, VW Golf Sportsvan, VW Touran, VW Tiguan and SEAT Tarraco.

Plants at Zwickau (ID.3, ID.4) and Transparent Factory (Bentley Flying Spur, VW Phaeton) in Dresden will also operate at a reduced capacity.

Mazda

2021 Mazda CX-5
Mazda carried over much of the equipment from the 2020 model in the 2021 CX-5. Mazda North American Operations

The Japanese automaker suspended production at manufacturing plants in Thailand and Mexico for 10 days at the tail end of August.

Mazda operates the Vina Mazda Automobile Manufacturing plant in Nui Thanh, Thailand for Mazda2 assembly. Mazda Powertrain Manufacturing in Rayong, Thailand builds the company's engines. Another facility in Rayong is a joint venture with Ford, dubbed AutoAlliance Thailand, where it produces the Mazda2, Mazda3, BT-50 and CX-3.

Its production in China was halted for five days at the start of August.

The Changan Mazda Automobile plant in Nanjing, China builds the Mazda3 and CX-5.

BMW

2020 BMW X6
The BMW X6 is the company's largest fastback SUV. BMW of North America, LLC.

In July, the company said that it had temporarily stopped production or reduced shifts at its three German factories and one British factory.

The company produces cars at Munich, Dingolfing, Regensburg and Leipzig facilities in Germany.

In the UK, MINI cars are produced at factories in Oxford, Swindon and Hams Hall. Rolls-Royce cars are built in Goodwood.

The stoppages extended to suppliers and contract assemblers as well.

The moves led to a production shortfall of about 10,000 vehicles.

Subaru

2021 Subaru Forester
The Subaru Forester continues to offer spacious accommodations. Subaru of America Inc.

At the beginning of September, Subaru announced that production would be halted entirely for four days in Japan.

The Japanese facility, located in Ota, builds the Crosstrek, the Forester and the BRZ.

The idling took place from September 7th to 10th.

Nissan

2021 Nissan Altima
The Nissan Altima slots below the Maxima in the company's lineup. Nissan North America

On August 30th, Nissan curtailed production at its Nissan Smyrna Assembly Plant manufacturing complex in Smyrna, Tennessee as a result of the shortage.

The company had already implemented production cuts at the facility in mid-August for two weeks before extending those cuts to the week of September 6th.

The plant produces the Rogue, Pathfinder, Murano, Maxima, Leaf and Inifiniti QX60.

Tesla

Tesla Model Y with roof rack
Two Tesla models ranked highly on this year's Cars.com American-Made Index list, including the Model Y. Tesla, Inc.

While no production cuts have officially been made in the U.S., the company has extended delivery timelines on certain models as other models are prioritized.

All versions of the Model S, except for the Plaid, are estimated for a February or March 2022 delivery.

Higher trims of the Model 3 are estimated for delivery in November or December, while the lowest trim has a March 2022 delivery estimate.

Both trims of the Model X are estimated for March or April 2022.

The Performance Model Y has a lead time to November, while the Long Range trim has an estimated delivery of March.

CEO Elon Musk said at the beginning of September that the chip shortage would delay the new generation of the Tesla Roadster until 2023.

In China, the company's Giga Shanghai facility reportedly halted some production lines for four days in August.

The facility constructs the Model 3 and Model Y for the Chinese market.

Volvo

Volvo XC40 Recharge
Volvo offers its XC40 SUV with a fully electric powertrain, among other options. Volvo Car USA

On August 23rd, the Swedish carmaker announced that Volvo Cars Torslanda, a manufacturing facility near Gothenburg, Sweden would halt production for a week due to the semiconductor shortage.

Volvo produces the XC60, V60, V60 Cross Country, V90, V90 Cross Country and XC90 at Torslanda.

Production was also halted at that site on August 11.