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Global Chip Shortage Worsening the Production Line of Auto Industry

Global automakers were smothering their form back in the markets expecting the chip shortage to subsidize in the spring. They are now warned by the Federal government that the shortage might continue for months. It could hinder the second-half recovery and prominently fraught uncertainty among auto manufacturers.

The significant failings in the chip shortage have been due to the widespread disruptions in Texas. The severe weather conditions that prevailed and sustained since February are leaving a long-drawn ramification on the production line of the auto industry. The wobbling time hasn’t arrived just at the right time. Semiconductor Manufacturing Co. Ltd. that halted production on March 19, has ripped apart the woes of the automaking industry. It has pilloried down car manufacturers in search of chips for developing their onboard electronics, safety systems such as automatic braking, and infotainment consoles.

The shortage has exacerbated last year due to the calamities eruptions in Texas and Japan. The cohesive momentum makes it more difficult for the companies to meet up with the pent-up demand of auto sales and Global chip supply. The carmakers are unable to accelerate their stirrings as they expected after the lockdown eased down across various parts of the world.

Volkswagen AG, Europe’s gigantic force in the auto industry, said this week that it would temporarily shut down the production of Jetta at its plant in Mexico on May 3 and might resume again later in the third week of May. The massive deterioration in the production line has been at the headquarters which are situated in Emden, Germany. The first quarter has been a significant success for the company, and the second quarter turned its probe becoming a disaster for most of the auto manufacturers across the world.

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