After chip crisis, foam shortage threatening US auto industry of development loss
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If the auto industry witnessed an unprecedented slowdown in 2020 due to the Coronavirus pandemic, 2021 started with few other problems. It had been the global microchip shortage that impacted the auto industry around the world at the beginning, producing a production halt. Now, another problem can be impacting the automakers, especially in the US market - foam shortage.
In February 2021, the crippling arctic weather in the Southern US region has impacted the supply of the foam for seats. The rough weather resulted in the shutting down of power throughout the region that is home to a sizable number of oil refineries. Despite gas, the oil market is in charge of some other by-products aswell that are being used in automobile production.
The foam production over the US has been impacted in mid-February due to the arctic blast. Oil is required to produce reboundable foam that is utilized in automotive seats. Relating to a publication, the plants developing foam could turn off as soon as March 8. The propylene oxide is a by-merchandise of the crude essential oil refining process that's needed is for the foam.
While generally there are other foam suppliers around the globe, tapping them quickly in order to avoid larger development shutdown has turned into a great concern for the US auto industry. The US auto market is definitely reportedly to witness a development halt in the approaching weeks as a result of foam shortage. The car industry is wishing that the elements will fall set up soon to offset the effects of the foam shortage.
The foam shortage is now salt in the wound of an ongoing microchip shortage which has led to General Motors facing temporary production shutdowns at its multiple making plants. Regarding to estimates, GM’s global development in 2021 could stop by more than 200,000 units due to the chip shortage. After that, the Covid-19 induced supply chain shortage is yet to be over.
Source: https://auto.hindustantimes.com