It is a complaint from an automobile industry official we met recently. Amid the shortage of automotive semiconductors, the company is making related parts as soon as the semiconductors are secured and making production plans centered on popular vehicle models. It’s like making a car as the pieces fit together.
|
The global automobile industry has an emergency in the supply and demand of semiconductors. As the scarcity of automotive semiconductors intensifies, major companies are gradually reducing their production. US General Motors (GM), which is already reducing production, has decided to further reduce the production of mid-size pickup trucks. Following GM Korea, which has already cut production, Hyundai Motor and Kia are also seeing production cuts in April. There is concern about a blow to the exclusive electric vehicle business that is just starting up.
Ionic 5 requires more than twice the semiconductors compared to internal combustion engines
In Korea, Hyundai Motors and Kia’s insteps fell on fire. Until now, it has been producing normally using the stocks accumulated since October last year, but it is known that the supply shortage pressure is increasing recently. Previously, inventory status was checked every week, but recently, the situation is being checked 2-3 times a week. First of all, the supply of parts is being driven by popular car models such as the Grandeur, Genesis G80, Carnival, and Sorento, which are behind orders. It is analyzed that the recent suspension of Sonata production for 5 days and the operation of Hyundai Motor’s Jeonju plant, which produces buses and trucks, for 5 days is not irrelevant to the semiconductor shortage situation.
The industry predicts that production disruptions will occur in earnest from 2Q. This is because there is no way to increase the supply and demand of semiconductors right away. An industry official said, “The production disruption seems inevitable until the third quarter when the semiconductor supply and demand situation is expected to be resolved,” and “Each company is preparing for crisis management plans by reviewing it.”
The most worrisome thing is that the electric vehicle industry, which starts in earnest from this year, has faced a big challenge from the start. Production of Hyundai Motor’s exclusive electric car’Ioniq 5’has already begun, and Kia’s’EV6′ will also begin production from the second half of the year when semiconductor shortages are expected to intensify. In the case of Ionic 5, the pre-contract volume recorded 23,000 units only on the first day (February 25), and recently exceeded 40,000 units. This year, more than half of the 70,000 production plans have already been filled. However, it is highly likely that the overall sales plan should be lowered as production disruptions are expected due to the shortage of semiconductors.
In particular, dedicated electric vehicles are known to contain more than two times more semiconductors than existing internal combustion engine vehicles, so the damage is expected to be more severe. It is reported that more than 500 semiconductors are included in IONIC 5.
Man-ki Chung, chairman of the Korea Automobile Industry Association, said, “Under the situation that the crisis caused by Corona 19 has not been completely resolved, the disruption in the supply of semiconductors for vehicles is likely to spread the crisis in the Korean automobile industry.” It is necessary to make efforts for international cooperation at the government level.”
|
◇GM’s’Going Grounds’.. Focused on the production of highly profitable vehicles
The situation of foreign automakers is even more serious. According to CNBC and others on the 24th (local time), the U.S. Automobile Workers’ Union (UAW) regional organization sent a message to its workers, stating that the GM Missouri plant will be shut down from the 29th to the 12th of next month. Models that reduce production at the Missouri plant include mid-sized pickup trucks such as GMC Canyon and Chevrolet Colorado. GM did not disclose specific production cuts. However, the company said that it will continue to make vans in Missouri.
GM also decided to shorten the shutdown period in the second half of the Missouri plant by two weeks ahead of schedule. Adjusted from May 24th to July 19th.
GM’s action is to focus on producing lucrative full-size pickup trucks and SUVs from scarce automotive semiconductors. It is a kind of hurdle. GM spokesman David Banas said, “GM will use all the available semiconductors to produce and ship its most popular products.” “The full-size truck plant will not shut down.”
Ford said today that it would cut production of transit vans at its Missouri plant this week. However, it has decided to maintain production of its flagship F-150 pickup truck. Like GM, it is planning to operate the factory by first driving semiconductors to’money’ models. In addition, major companies such as Honda, Toyota, and Volkswagen are already cutting production.
The scarcity of semiconductors is getting worse and worse. Due to the record blackout in the United States, automotive semiconductor manufacturers such as NXP and Infineon stopped operating their lines, and Renesas, the world’s third largest automotive semiconductor manufacturer, shut down due to an unexpected fire. “We are considering the aftermath of the Renesas fire (which will affect vehicle production),” Barnas said.
According to the analysis of consulting firm Alix Partners, the global automobile industry is expected to experience a decrease in sales of $60.6 billion (about 69 trillion won) this year due to a shortage of semiconductors.