The continuous semiconductor chip shortage is halting vehicle productions, particularly that of connected cars.
A connected car one that can communicate bidirectionally with other systems outside of the car. While auto industry leaders acknowledge the situation will likely remain for months, concerns about advancing features of connected cars and reduced production of units have started to kick in.
"These most recent scheduling adjustments are being driven by temporary parts shortages caused by semiconductor supply constraints from international markets experiencing COVID-19-related restrictions," General Motors (GM) said in a statement, according to PYMNTS.com. "We expect it to be a near-term issue."
While it has been striving to complete its production on mid-size pickup trucks, GM has recently announced it will have to temporarily halt its work on its full-size pickup trucks for at least a week due to insufficient supply of components required to complete the vehicles, according to PYMNTS.com.
GM’s current predicament comes from the fact that its high-end trucks and SUVs are some of the most connected cars on the road. However, the company had announced earlier that it would increase vehicle deliveries to dealerships, in spite of a significant shortage of semiconductor chips, according to Mega Dealer News in June.
The chip dilemma may also hamper President Joe Biden’s goal of making half of new U.S. vehicles electric by 2030. He recently signed the executive order laying out solutions to address the climate crisis, according to a recent report by Mega Dealer News.
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