UzAuto Motors shifts delivery time as global semiconductor shortage affects “car giant”

Uzbek car manufacturer UzAuto Motors plans to shift the delivery time of manufactured cars by up to two months, the company`s representatives told journalists during a press tour on March 2.

The company cited a worldwide shortage of semiconductors as the reason.

"Interruptions in the supply of chips and disruption of logistics chains have already caused the closure of a number of car factories, which maximally reduced the purchase of microprocessors in early 2020 at the dawn of coronavirus lockdowns," the company said.

"The problem also affected UzAuto Motors, in particular, the production plans for the second quarter of 2021”, it added.

“GM's Global Supply Chain Management works closely with suppliers to find solutions to their semiconductor requirements and mitigate the impact on GM and its partners, including UzAuto Motors. Our intention is to cover as many production losses as possible at each facility, " said Christian Sommer, GM's President and Managing Director of Strategic Markets, Alliances and Distributors. He believes that the situation will stabilize in the second half of 2021.

On the same day, Uzauto Motors announced the resumption of sales of Spark, Nexia, Cobalt and Lacetti models from March 3, sales of which were suspended on February 12. However, due to the current situation, the delivery time will be extended by up to two months.

"The situation on semiconductors is under the control of the management of UzAuto Motors. This allows us to get out from the global shortage of chips with minimal losses, and to perform all commitments to customers under existing contracts” the management of the plant said.

It plans to use funds received under the new contracts for the purchase of raw materials and components to ensure the continuous production of cars.