A global chip shortage is affecting how quickly we can drive a car off the lot or buy a new laptop. In this 9 minute video (click the link below), The Wall Street Journal (July 2, 2021) takes us on a visit to a fabrication plant in Singapore to see the complex process of chip making and how one manufacturer is trying to overcome the shortage.
How is the shortage impacting the auto industry? Here is one example: Ford Motor Co. said it is forced it to cut output across more than a half-dozen U.S. factories in July, a sign that the supply-chain troubles could take longer to ease than auto-industry executives previously believed.
Ford’s pickup truck factories in Michigan, Kentucky and Missouri will reduce or stop production for much of July, while an Explorer plant in Chicago will be idled for the entire month. Production of several other popular models also will be reduced or scrapped, including the Escape SUV and Mustang sports car.
The Chicago plant and the factories that assemble the pickup trucks—Ford’s biggest moneymaker—had cut production earlier this spring because of the chip shortage. Ford said it is giving priority to the completion of thousands of vehicles that it has assembled in recent months but parked in lots near factories as it awaits needed computer chips. It will continue to build new vehicles, but will curb production so it can move out some of those waylaid models.
Classroom discussion questions:
1. After watching the video, explain why can’t enough chips be produced immediately?
2. How did the auto industry get into this position?