SAIC says it is taking steps to reduce impact of chip shortage
Chinese auto giant SAIC Motor said in a communication with investors that it is minimizing the impact of chip shortages by strengthening global supply chain synergies.
The imbalance between supply and demand for chips is a common problem for the global automotive industry, SAIC said.
Although the chip shortage will continue for some time, SAIC has the advantage of a strong industry chain system and will work with the industry to overcome the difficulties, the company said.
As previously reported by CnEVPost, SAIC's production is reported to be reduced by about 200,000 units due to the global chip shortage.
The figure is equivalent to 3.6 percent of the company's sales of 5.6 million units last year and 3.2 percent of its sales target of 6.17 million units this year, Reuters said, citing people familiar with the matter.
Most automakers around the world are currently suffering from the impact of the shortage of automotive semiconductors. Ford said last week it would cut production at seven North American assembly plants.
Kia said it would reduce production at its Georgia plant by two days. A Subaru assembly plant in Japan will reduce production by about 10,000 vehicles.