- A global semiconductor chip shortage has slowed production of heavy-duty trucks, the WSJ reports.
- ACT Research said that 14,920 units were produced in July, the lowest level since May 2020.
- ACT said the backlog of truck orders hit 262,100 in July, three times greater than in July 2020.
- See more stories on Insider’s business page.
A global shortage of semiconductor chips has hampered production of heavy-duty trucks, The Wall Street Journal reported Friday.
North American production of Class 8 vehicles – the large trucks used to transport goods – fell to its lowest level since May 2020 in July, with 14,920 units manufactured, according to the most recent data from research firm ACT Research, cited by The Journal.
ACT Research said that the backlog of orders for trucks almost tripled to 262,100, compared to July 2020 levels.
“Everything you want to see for Class 8 demand is there in spades,” ACT President Kenny Vieth told the Journal. “What’s missing are parts.”
Vieth also told the Journal that some manufacturers are moving semiconductor chips from smaller trucks to Class 8 models to maximize their value.
Multiple industries have faced a shortage of semiconductor chips in recent months. The small units, which power electronic devices, account for about 40% of a new vehicle’s cost, according to a Deloitte report.
General Motors said Thursday that it would pause production at eight of its North American plants over the next two weeks due to the chip shortage.
“These recent scheduling adjustments are being driven by the continued parts shortages caused by semiconductor supply constraints from international markets experiencing COVID-19-related restrictions,” GM said in a statement.
ACT Research did not immediately respond to Insider’s request for comment.
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