AFS: The lack of cores will cause the car production in Europe to drop by 1 million this year

According to foreign media reports, according to the latest data from the auto industry data forecasting company AutoForecast Solutions (hereinafter referred to as AFS), as of July 10, due to the shortage of chips, the global auto market has reducedproductionby about 2.6486 million vehicles this year.AFS forecasts that by the end of this year, global automakers will cut 3.5515 million vehicles due to core shortages.

According to the latest statistics from AFS, from a regional perspective, so far this year, the number of cars in Europe has been reduced by more than 1 million due to lack of cores, making it the first region in the world to reduce theproductionof vehicles by more than one million due to lack of cores this year.In the past three weeks, the European region has cut about 232,000 cars. In the last week alone, Europe cut 139,000 cars due to core shortages, accounting for the vast majority of the global car production reduction last week.

"2022 has been a difficult time for the European automotive industry, with supply disruptions for semiconductors, wiring harnesses and various other sources hampering European production," Sam Fiorani, vice president ofglobal automotiveforecasting at AFS, said in an email.

Chipmakers STMicroelectronics and GlobalFoundries are reportedly considering plans to build a new semiconductor facility in France.But McKinsey & Company estimated in a June report that the chip shortage is likely to continue for at least another "three to five years."

However,market analystSusquehanna Financial Group has brought good news. The global average chip lead time (the cycle from ordering to delivery of chips) in June was 27 weeks, down from 27.1 weeks in May and unchanged from 27 weeks in April. , suggesting a slight easing of a chip shortage that has plagued automakers and other industries for more than a year.

"There are signs that supply chain inflation is slowing and price increases are slowing, but other headwinds remain," Susquehanna analyst Chris Rolland said in a July 6 research note."None of the major companies we tracked had record chip lead times."