The Microchip Shortage Continues Globally

Across the globe, manufacturing plants continue to cut production on vehicles due to continued microchip shortages. Year-to-date, over 1 million vehicles have been eliminated from production plans, just over one-third of the 2.8 million vehicles forecasted to be cut during 2023. While still a significant figure, the 2023 forecast represents a 36% reduction in production cuts compared to 2022, where nearly 4.4 million production cuts occurred. Consistent with 2022, North America and Europe continue to lead the count for most production cuts.