Lost production due to the global chip shortage for the period was 190,000 vehicles,
Nearly all automakers are struggling with the chip shortage, which was caused by semiconductor=makers switching their factories to more profitable consumer-electronics processors when automakers closed last year due to the pandemic. Car production came back faster than expected, but the chipmakers did not quickly resume production of automotive-grade chips.
Storms affecting chipmakers in
Palmer said the impact could continue into 2022. “We don’t have great visibility,” he said. “As such it would be imprudent to assume the issue is going to go away.”
Overall, shipments were up 11% to 1,567,000, due to higher demand and product mix. Production losses due to the semiconductor chip shortage darkened the improvements over the first quarter of 2020, when production was suspended temporarily due to the pandemic.
Palmer reported that progress on synergies in the merger “is very encouraging.” Executives have pledged
“Obviously, we’re ramping up, and it’s going to take time to realize the full potential of the merger,’’ he said. “But I think we are very much on track.”
This version corrects the revenue figures to billions, not millions.
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