Chip shortage hurting truck makers like Paccar

Chip Shortage Hurting Truck Makers – Paccar truck deliveries across the Kenworth, Peterbilt and DAF Trucks brands are expected to fall 7000 units from second-quarter deliveries because of the ongoing semiconductor shortage

Paccar truck deliveries across the Kenworth, Peterbilt and DAF Trucks brands are expected to fall 7,000 units from second-quarter deliveries because of the ongoing semiconductor shortage, the truck manufacturer said.

Paccar is not alone in being impacted by the microchip paucity. The impact on complete assemblies is widespread among the Big Four manufacturers — Paccar, Daimler Trucks North America, which makes Freightliner and Western Star trucks; Volvo Trucks North America, which builds Volvo and Mack Trucks models; and Traton Group’s Navistar International.

The inability to complete trucks with the chip sets critical to safety systems and other operations has led to red-tagging, which has nearly finished trucks piling up where manufacturers can find places to store them. The same is true for passenger vehicle makers, which are proportionally much harder hit by the shortfall.

Chip Shortage Hurting Truck Makers – Paccar first quarter had substantially built and parked about 3000 trucks… The issue grew to about 6000 trucks in the second quarter and is expanding again.

Bellevue, Wash.-based Paccar said after the first quarter it had substantially built and parked about 3,000 trucks, which would be released after the chips were retrofitted. The issue grew to about 6,000 trucks in the second quarter and is expanding again.

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No relief expected in Q4

“Paccar anticipates that the semiconductor shortage and associated production inefficiencies will continue in the fourth quarter,’’ the company said. “Paccar’s third-quarter 2021 truck deliveries were estimated to be about 33,000 vehicles, compared to 40,100 vehicles delivered in the second quarter of 2021.’’

Chip Shortage Hurting Truck Makers – The shortage of new trucks is causing fleets to hold onto equipment longer… starving the used truck market

The semiconductor issue led to the layoffs of 350 workers at the Kenworth manufacturing plant in Chillicothe, Ohio, in August.

Truck demand is strong but cannot be met because of the supply chain issue, Paccar said.

The chip shortage has had a chilling effect across the trucking ecosystem. The shortage of new trucks is causing fleets to hold onto equipment longer. That, in turn, is starving the used truck market, which has seen prices rise as much as 70 percent year-over-year because of a lack of late-model used trucks.