The Latest On The Chip Shortage

The Latest On The Chip Shortage

A global pandemic and a devastating winter storm in the South has caused major shortages in the U.S. auto parts industry.

Between a global pandemic over the past year and a devastating winter storm in the South this winter, the U.S. auto parts industry has been struggling with parts shortages. Compounding an already challenging situation, the shortages now include microchips used to control a number of critical functions in a vehicle, including safety systems and powertrains. 

The shortages have resulted in a number of major automakers such as Ford, Toyota, Volkswagen, Nissan and Honda having to halt production over the past several weeks, leading to a slowdown in the availability of new vehicles as well.

Online car-shopping portal has reported that consumers in the market for a new vehicle will likely have a harder time finding what they want at an affordable price right now due to the severe supply shortages affecting the automotive industry. According to Edmunds, new-vehicle inventory on sale at dealerships nationwide is down by 36% in March compared to a year ago, and prices are rising for both new and used vehicles as a result. 

“The chipset shortage has snowballed into a bigger crisis for the automotive industry,” said Jessica Caldwell, Edmunds’ executive director of insights. “Major auto manufacturing plants are implementing temporary closures, and we’re seeing the industry being hit hard on both sides: Retail customers are being offered fewer choices and paying higher prices, while fleet customers are likely seeing their orders delayed as auto manufacturers shift their focus to serving consumers.” 

While the chip shortage has not directly affected the automotive aftermarket just yet, Ann Wilson, senior vice president of Government Affairs of the Motor & Equipment Manufacturers Association (MEMA) in Washington, D.C., said it’s something the industry needs to keep an eye on.

In a recent AASA quarterly media call, Wilson noted that President Biden’s 100-day action plan includes a focus on certain critical elements in the supply chain, including semiconductors and silicon wafers, as well rare earths and batteries. According to media reports, the Biden administration is scheduled to hold a virtual meeting on April 12 with automakers and chip makers such as Intel Corp. to discuss the supply chain issues.

“Right now, we are working on some comments on silicon wafers and semiconductors. This is not something that has affected the aftermarket specifically – yet,” Wilson said. “But I want to underline the word ‘yet.’ This is a global crisis that is affecting particularly our OE members, both in the automotive and heavy-vehicle/commercial-vehicle space. It is something we need to address as a country. Can we reshore some of the silicon wafer/semiconductor manufacturing? If we do that, can we make sure that when they are reshored with the help of federal money, that they are making wafers and chips that we can use in our industry?”

You May Also Like

Litens Aftermarket North America Announces 26 New SKUs

The new product lineup covers over 9,000,000 vehicles in operation, according to Litens.


Litens Aftermarket N.A. announced it added 26 new SKUs to its product lineup, covering over 9,000,000 vehicles in operation. 

This new product lineup features: 

Two new pulleys covering almost 2,500,000 VIO, 

Seven new overrunning alternator decoupler pulleys covering over 1,600,000 VIO

14 belt tensioners covering over 5,500,000 VIO. 

Delphi Adds 180 Parts in First Half of 2024

The new products represent more than 153 million vehicles in operation across the United States and Canada.

PRT Releases 28 New Complete Struts in North America

The new products represent nearly 6 million vehicles in new coverage, PRT said.

Purolator Adds Filter Coverage for More Than 2 Million Vehicles

Seventy-three part numbers have been added to the company’s line of oil, air and cabin air filters.

Purolator Adds Filter Coverage For More Than 2 Million Vehicles
Andrew Grose Named Vice President of Grote Networks

With a background in engineering and strategy, Grose will lead the newly formed Grote Networks Business Division.

Andrew Grose Named Vice President of Grote Networks
Other Posts
KYB Celebrates 50 Years in North America

As it celebrates the past and looks to the future, KYB said it continues to grow, with a new product line scheduled for release in 2025.

KYB 50th
Lubrizol Announces New Oil Additive Solution

The company said the additive will enable oil marketers to meet the performance requirements of ILSAC GF-7.

Lubrizol Announces New Oil Additive Solution
Modine Releases Advanced Cabin Climate System

The new system expands Modine’s EVantage portfolio.

GSP Announces July New Products

The company has released 162 ADVANTEDGE Loaded Struts, 26 Wheel Hub Assemblies and 4 PrePressed Wheel Hub Assemblies.