Automakers face parts shortage in North America if output tops 16 million units

Article by Anita Panait, on October 22, 2013

Carmakers may encounter spot shortages of components in 2014 if North American vehicle output tops 16 million units, according to a new survey of 100 suppliers by IRN Inc. Around 26 percent of respondent-suppliers said they had "difficulty meeting production expectations" this year, according to a survey conducted by the consulting firm. Chrysler Group could be particularly vulnerable to spot parts shortages, as 42 percent of the respondents supplying the carmaker said they had trouble meeting production quotas.

However, it would be premature for Chrysler to hit the panic button, since only 15 percent of the suppliers on the poll were Chrysler vendors, a small sample size. Across the auto industry, the poll suggests that production bottlenecks will turn to worse in 2014 if annual North American vehicle production reaches 16 million units.

Around 28 percent of respondents said they don’t have ample capacity to meet demand at that level of production, according to the poll. The IRN report highlighted that spot shortages could affect all carmakers next year, saying that “capacity may finally be at the breaking point.” If the projection comes true, spot parts shortages would be one of the top issues for the auto industry in 2014."

The survey also showed 38 percent of respondents supplying electronics components said they lacked enough capacity if North American output tops 16 million vehicles. On the other hand, 30 percent of suppliers of chassis and suspension components said they would not have enough capacity if vehicle production reaches the estimated figure.

Topics: north america

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