Semiconductor shortage has already left auto companies in a tough spot as many have shut down plants across North America
Global automotive industry was severely impacted when the Covid-19 pandemic hit the world at the start of last year. The subsequent lockdowns affected production and supply chain of all small and major manufacturing units that had adverse impacts on automotive sales around the world. It took months for the industry to get back on its feet.
At the start of 2021, it was hit by another bump as the world faced a global shortage of semiconductor chips that again halted production of automobiles. It looks as if the slowdown in the automotive industry in the past year is not going to go away anytime soon as it hit another major roadblock.
Crisis Due To Winter Storm in Texas
Automakers, especially in the USA could soon face a shortage of foam used in car seats due to the winter storm that hit the southern state of Texas last month. The Arctic storm led to shutting down of major power stations across the state which is home to many oil refineries. Other than fuel, the oil industry is also responsible for other by-products as well that are key to automobile production.
One of the by-products of the oil industry is propylene oxide which is used to make polyurethane foam which automakers use in the seats of their cars or two-wheelers. Latest reports state that manufacturing plants in the US could run out of foam by March 8.