Canadian auto production ‘being hit hard’ by global semiconductor shortage
Global News
Canada is expected to produce only about 1.2 million vehicles this year, down from 1.4 million last year and well off the 2.2 million yearly average for the decade up until 2019.
To be an autoworker in Canada this year has meant living with a fair bit of uncertainty.
“There’s no consistency,” said Mark Sciberras, president of the Unifor local branch at Ford Motor Co.‘s Oakville, Ont. operations. “One week to the next, you don’t know if you’re working.”
The Oakville plant, like so many auto assembly lines globally, has seen its production start and stop numerous times this year because of the severe semiconductor chip shortage caused by pandemic-related production issues and a surge in demand for electronics.
As the supply chain issues drag on though, it has become clear that Canada’s production slowdown is worse than many other countries.
“Canada’s definitely being hit hard,” said Sam Fiorani, head of global vehicle forecasting at AutoForecast Solutions.
Production in Canada for the 12 months to July of this year was down 6.6 per cent compared with a year earlier _ levels that were already low because of widespread shutdowns in the spring of 2020.
Meanwhile, Mexico saw production climb 11.3 per cent for the year until July, and the U.S. saw production climb 13.9 per cent in the same period, according to AutoForecast.
Canada is now on track to produce only about 1.2 million vehicles this year, down from 1.4 million last year and well off the 2.2 million yearly average for the decade up until 2019, according to a Scotiabank Economics report.