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Six months into the semi-conductor shortage it is obvious that not all automakers are affected in the same way. The Renesas fire in Japan hit Ford Motor hard, making the problem much worse for the struggling automaker. The fact is some automakers have been hurt worse than others.
Ford Motor looks to have been affected the most, as shortage-related plant shutdowns left its facilities running at just 55% of total capacity through May of 2021. Ford’s estimated volume loss in the first half of this year is more than 50% greater than that recorded by the next manufacturer in line – and the largest in North America – GM, according to consultancy LMC. (Ford Follows GM: Q2 2021 Earnings to Exceed Its Expectations) ***
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However, Toyota, Tesla, BMW and Daimler have suffered little to none on North American production volumes from the semiconductor shortage, with output running near 80%, or above, through May. Toyota shrugged the crisis off running at more than 90% of capacity.
“If we dig a little deeper into the lost volume, there are clear disparities. When looking at volume lost in the high-profit Full-size Pickup and SUV segments – which include lucrative models like the Ford F-150, Ram 1500, Chevrolet Silverado, GMC Yukon and Ford Expedition – the impact on Ford’s output is far more alarming, with an estimated 37% of the volume losses stemming from those segments, compared with 13% for Stellantis and only 1% for GM,” says Bill Rinna, Director Vehicle Forecasts, The Americas at LMC Automotive.
“Not only has the chip shortage constrained automakers’ profits, but the resulting drop in vehicle supply has also impacted their US sales at a time when demand has been particularly robust. Unsurprisingly, given the extent to which the bestselling F-150 Large Pickup has been impacted, Ford has suffered the biggest market share loss in the US, while Toyota and Hyundai Groups have made the largest gains,” Rinna said.
The share change may or not be a short-term blip until supply is back to standard levels for automakers. “But what should not be underestimated is the cost of losing a (sometimes very loyal) customer, due to lack of inventory, or the effort it will take to win back those disappointed buyers,” observes Rinna.
*** After this story published, Ford said on Wednesday 30 June 2021 that its pickup truck factories in Michigan, Kentucky and Missouri will reduce or stop production for almost all of July. The Explorer plant in Chicago will shut for the entire month. Production of several other models also will be reduced or canceled, including the Escape SUV and Mustang sports car.
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