Chip shortage hits auto productionClick image to enlarge

Auto production around the world has been affected by the global semiconductor shortage, but in Canada the industry has been especially hard hit, certainly compared to the country’s North American neighbours.

For the 12 months ending last July, vehicle production in Canada declined 6.6 per cent compared with the same period a year earlier – and levels were already low because of the impact of pandemic-related shutdowns early in 2020, according to a CTV News report. Canada is now predicted to manufacture only 1.2 million vehicles this year, down from 1.4 million last year and way behind the 2.2 million annual average posted for the years 2009–2019. In fact Canadian production hasn’t been this low since the disastrous years of the early 1980s.

Meanwhile, for the same 12-month period, production climbed 11.3 and 13.9 per cent in Mexico and the US respectively. One reason for the disparity may be that there are simply fewer assembly lines in this country.

Read the full report here.

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