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Melrose order cancellations surge as automakers battle chip shortage By Reuters


© Reuters. FILE PHOTO: A researcher plants a semiconductor on an interface board during a research work to design and develop a semiconductor product at Tsinghua Unigroup research centre in Beijing, China, February 29, 2016. REUTERS/Kim Kyung-Hoon/File Photo

(Reuters) -British parts supplier Melrose’s automotive clients are cancelling orders at 25 times the rate seen earlier this year, it said on Tuesday, as the auto industry remains engulfed in a global chip shortage caused by the pandemic.

The owner of GKN (LON:), which supplies parts to carmakers such as Volkswagen (DE:), said the “in-month” cancellation from automotive customers has risen to about 20% to 25% from a normal 1% rate seen during the January-March period.

“Tightened supply of semiconductors to the automotive industry are frustrating and difficult to plan for, but whilst they affect current trading, they don’t impact long-term value, particularly as cash is well controlled and debt reduced,” Chief

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What you need to know about electric vehicles as President Biden, automakers announce EV goals

Gas will be out of gas if President Biden has his way.

The White House on Thursday announced a goal of making half of all new cars, trucks and SUVs sold in the U.S. zero-emission vehicles by 2030, including battery-powered electric vehicles and hydrogen fuel cell cars.

The goal drew support from the automotive industry’s largest players, including General Motors, Ford, Toyota, Honda, Volkswagen and Stellantis, the company formerly known as Fiat Chrysler. Supporters of Biden’s electric vehicle plan manufacture and sell the world’s most popular gas-powered vehicles, from the Ford F-150 pickup to the Toyota RAV4 SUV and the Honda Accord sedan.

Biden promoted the transition from gas to electric vehicles as crucial to combating climate change, which is worsened by emissions from internal combustion engine (ICE) vehicles.

But getting from here to there will take years and involves numerous challenges.

► Charging access poses hurdle: More electric

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What automakers and consumers can learn from the chip shortage crunch

When will it be over?

The global chip shortage that has idled automotive plants, delayed shipments of new vehicles and pushed transaction prices to record levels may soon relent as early as this fall. But the dramatic impact of the last 12 months could very well continue into 2022 and beyond.

“Western and U.S. automakers have been hit the hardest. The Japanese have done generally better,” Dan Hearsch, an analyst at AlixPartners, told ABC News. “Automakers are definitely not happy. They’re missing out on sales, on volume. This is not a case where it’s good for any of them.”

Shrinking inventories have led to higher transaction prices for consumers flush with cash and looking to upgrade their rides. Even prices of used cars have skyrocketed nearly 17% in the last 12 months, according to data from iSeeCars.com. Pickup trucks and sports cars are seeing the largest increases.

“More than

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Intel in talks with automakers to produce vehicle chips as shortages bite

In a nutshell: Intel wants to step in and help the automotive industry by creating chips for vehicles. CEO Pat Gelsinger said the company aims to produce the silicon within six to nine months.

We heard last week that Gelsinger was one of several executives from top chipmakers and auto manufacturers set to meet with high-level officials within the Biden administration to discuss the semiconductor supply chain issues. Execs from Dell, Samsung, Ford, HP, AT&T, Alphabet, General Motors, and others attended the April 12 meeting.

Following yesterday’s gathering, Gelsinger said Intel was talking to companies that design chips for automakers about manufacturing them in its fabs. The CEO last month unveiled plans to open up the company’s current and planned manufacturing capacity to other chipmakers through the launch of Intel Foundry Services.

Intel is spending $20 billion on two new state-of-the-art fabs focused on EUV-based (extreme ultraviolet) process technologies at

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