Global light vehicle production to grow 50% in Q2, supply woes persist – IHS

On April 27, 2020, workers at the Volkswagen production factory in Wolfsburg, Germany, wear protection masks. REUTERS/Swen Pfoertner/Pool 30 JUNE (Reuters) – According to data firm IHS Markit, global light vehicle production is likely to climb 50% in the second quarter as the industry rebounds from the epidemic, but supply shortages will remain an issue. According to IHS, semiconductor capacity will only be able to meet demand in the first quarter of 2022. “The emergence of new (COVID-19) strains, particularly in regions with inadequate vaccinations, continues to jeopardize semiconductor availability,” according to IHS. Storms in Texas, the Fukushima earthquake in Japan, and a fire at a Renesas Electronics Corp. semiconductor factory all wreaked havoc on supply chains in the first quarter (6723.T). According to IHS, the most significant impact of supply disruptions occurred in the second quarter. According to consulting firm AlixPartners, reduced output due to semiconductor shortages has resulted in the lowest levels of unsold automobiles and trucks on dealer lots in years. find out more Sanjana Shivdas contributed reporting from Bengaluru, and Vinay Dwivedi edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More