There’s One other Chip Scarcity Coming To Screw Up Automobile Manufacturing

Good morning! It is Wednesday, October 22, 2025, and that is The Morning Shift, your day by day roundup of the highest automotive headlines from all over the world, in a single place. That is the place you will discover a very powerful tales which are shaping the best way Individuals drive and get round.

On this morning’s version, the auto trade is gearing up for an additional semiconductor chip scarcity, Jaguar-Land Rover’s cyberattack price the UK financial system over $2.5 billion, an EV auto provider in Michigan is closing its doorways and Ford simply recalled 1.4 million automobiles over a single difficulty.

Learn extra: Honda Tremendous Cub: All About The Historical past-Making Motorbike

1st Gear: A chip scarcity is brewing and able to mess up automobile manufacturing

Hey, so you know the way automobile manufacturing is already a multitude and vehicles are already tremendous costly? Properly, prepare for all of that to worsen. A bunch representing main automakers warned that one other chip scarcity is coming, due to a dispute between the governments of China and the Netherlands. It may rapidly influence auto manufacturing within the U.S.

Earlier this month, automakers and suppliers obtained discover from chipmaker Nexperia that it may now not assure deliveries of its chips, in keeping with the EU’s auto affiliation. The affiliation additionally mentioned manufacturing may very well be considerably disrupted. That is simply nice, is not it? From Reuters:

In the USA, the Alliance for Automotive Innovation, which represents Common Motors, Toyota, Ford, Volkswagen, Hyundai, and almost all different main automakers, urged a fast decision.

“If the cargo of automotive chips would not resume – rapidly – it should disrupt auto manufacturing within the U.S. and plenty of different nations and have a spillover impact in different industries,” mentioned the group’s CEO John Bozzella. “It is that important.”

Some automakers instructed Reuters that U.S. auto vegetation may very well be affected as quickly as subsequent month. They declined to be named as a result of sensitivity of the difficulty.

The chips made by Nexperia are essential to manufacturing of U.S. elements and automobiles.

Here is how all the pieces fell aside between the Chinese language and Dutch governments:

The Dutch authorities introduced on [October 12] that it had as of September 30 taken management of Chinese language-owned laptop chipmaker Nexperia, citing worries in regards to the potential switch of expertise to Nexperia’s Chinese language mum or dad firm, Wingtech.

Court docket paperwork confirmed the Dutch authorities’s transfer got here after months of rising U.S. stress on the corporate. Nexperia was prone to being impacted by a brand new U.S. rule that extends export management restrictions to corporations a minimum of 50% owned by a number of entities on the U.S. entity listing.

Washington put Wingtech, which has 100% possession of Nexperia, on the U.S. listing in late December.

The Chinese language commerce ministry issued on October 4 an export management discover prohibiting Nexperia China and its subcontractors from exporting particular completed parts and sub-assemblies manufactured in China, in keeping with an announcement Nexperia printed on Tuesday.

Proper now, it is not likely clear how all of that is going to shake out, however I am nearly optimistic it will not be good for shoppers such as you and me. I am positive you all keep in mind the final chip scarcity within the wake of the pandemic. There have been huge constraints placed on automobile manufacturing, and even as soon as vehicles had been in a position to begin getting out the door, lots of them had been shipped with out options they’d in any other case have, like heated seats and computerized home windows.

2nd Gear: JLR cyberatack price the UK financial system billions

The cyberattack in opposition to Jaguar-Land Rover appears to have price the British financial system about $2.55 billion and impacted over 5,000 companies, in keeping with a report printed by the Cyber Monitoring Centre, an unbiased cybersecurity physique made up of trade specialists. Manufacturing was down at JLR’s international vegetation for a little bit greater than 5 weeks after the assault.

Whereas manufacturing is slowly coming again on-line now, the report did say that the amount of cash misplaced may develop if there are additional surprising delays to the restoration of manufacturing. From Reuters:

“This incident seems to be probably the most economically damaging cyber occasion to hit the UK, with the overwhelming majority of the monetary influence being as a result of lack of manufacturing output at JLR and its suppliers,” the report mentioned.

[…]

The CMC, which is funded by the insurance coverage trade and categorises the monetary influence of main cybersecurity incidents affecting British companies, ranked the JLR hack as a Class 3 systemic occasion, out of a scale of 5.

The CMC’s estimate “displays the substantial disruption to JLR’s manufacturing, to its multi-tier manufacturing provide chain, and to downstream organisations together with dealerships,” the report mentioned.

[…]

JLR, which analysts estimated was shedding round 50 million kilos per week from the shutdown, was supplied with a 1.5 billion pound mortgage assure by the British authorities in late September to assist it help suppliers.

Earlier this month, Jaguar-Land Rover introduced manufacturing again on-line after it had been shut down since September 1. The automaker has three factories within the U.Ok. and one in Slovakia that produce about 1,000 automobiles per day.

third Gear: Driveline provider Dana closes Michigan plant, lays off 200

Automotive provider Dana Thermal Merchandise is closing its plant in Auburn Hills, Michigan and shedding 200 employees due to weak demand for electrical automobiles and altering priorities throughout the trade. The corporate moved to completely lower all staff on the plant beginning October 9 and persevering with via January 31, in keeping with a WARN discover filed with the state that’s required for mass layoffs and plant closures. From Automotive Information:

“I can verify that we’ve made the troublesome resolution to shut our manufacturing facility positioned on Giddings Highway in Auburn Hills, MI as a direct results of the surprising and instant discount in buyer orders pushed by decrease demand for electrical automobiles, which has rendered continued operations on the plant now not viable,” Dana spokesman Craig Barber mentioned in an announcement to Automotive Information affiliate Crain’s Detroit Enterprise.

The Maumee, Ohio-based provider’s conventional enterprise is supplying drivelines to automakers similar to Ford Motor Co., its largest buyer. Alongside these prospects, Dana invested closely in EVs just a few years in the past when Ford and Common Motors went all in on battery electrical, predicting fast-growing demand and large volumes for elements suppliers.

In August of 2022, Dana introduced plans to speculate $54.2 million and create 200 jobs by the tip of 2024 on the EV battery cooling plant that’s now set to shut completely. On the time, it mentioned the funding would come with $4 million of leasehold enhancements to upfit the house and $40 million of apparatus, together with brazing, stamping and post-powder coating traces.

That is all down the drain now, together with 200 American jobs.

4th Gear: 1.4 million Fords recalled for rearview digicam difficulty

Ford is recalling about 1.45 million automobiles within the U.S. due to a rearview digicam difficulty, and it should lengthen guarantee protection on thousands and thousands of different automobiles. Someway, this is not even the most important rearview digicam recall Ford has issued in the previous few weeks. In September, Ford recalled 1.9 million automobiles all over the world due to defective reverse cameras. Oh, Ford. What are we going to do with you? From Reuters:

The brand new recall comes after the Nationwide Freeway Visitors Security Administration in January requested Ford about complaints of digicam failures, prompting the automaker to research.

Recalled automobiles could have cameras which have distorted, intermittent or clean photographs when in reverse, growing the chance of a crash.

The recall covers numerous 2015 via 2020 mannequin yr Explorer, Escape, Mustang, Flex, Fiesta, C-Max, Taurus, Fusion and Lincoln MKT and MKZ automobiles. Sellers will examine and change cameras as wanted.

In September, NHTSA and Ford agreed on a plan to handle the inhabitants of all automobiles constructed between 2015 and 2025 with analog cameras in two classes: some can be recalled and the rest can be coated by a degree buyer satisfaction program that features a 15-year prolonged guarantee on rear cameras.

Ford didn’t instantly say what number of automobiles are coated by the prolonged guarantee however it contains greater than two dozen automobile fashions together with 2015-2020 F-150 vans.

Ford says it’s conscious of about 12,500 guarantee claims and 5 accidents tied to digicam points. Fortunately, nobody has been injured. In November of final yr, Ford agreed to a $165 million civil penalty after a NHTSA investigation discovered the corporate had did not recall automobiles with faulty rearview cameras in a well timed method.

For these protecting rating at residence, that is Ford’s 126th recall of the yr. No different automaker has greater than 40.

Reverse: Dammit, Lance

I might have thought that somebody who appeared within the 2004 smash hit Dodgeball: A True Underdog Story would have extra integrity than this, however I suppose not. It is a rattling disgrace. If you wish to be taught extra about Armstrong and this entire fiasco, head over to Historical past.com.

On the radio: Ethel Cain – American Teenager

Here is what everyone seems to be listening to as we speak. Bought it? Good. If I see you on the road, and you are not listening to Ethel Cain, we’ll have large issues, buddy.

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