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After the Semiconductor shortage now comes the Foam shortage crisis

Recently conditions haven’t been very present for the automobile industry, since the last year the automobile companies have been suffering from problems the COVID-19 Pandemic which resulted in an almost no sale year, however, till the end of 2020 things were starting to get better, but then came a shortage of semiconductors which resulted in many plant shutdown all over the globe, and to even amplify this worse situation another problem has risen concerning the shortage of foam used in the seats of cars and bikes.

This shortage of Foam is due to a sever blizzard which struck the southern part of Texas and has resulted in many sever condition for the local population and even for many companies due to the blizzard affecting major power stations. Texas is most known for its various oil refineries, which not only produces oil but is also responsible for its byproduct that act as a key ingredient for many automobile products. One of these byproducts (propylene oxide) is also used in making the polyurethane foam which is used by many companies from car seats and bike seats. Although, this will affect the industry globally but, the major impact will be seen by the American companies and if going by the reports many US companies may run out of foam by March 10.

This shortage will be resulting in a major production halt for the automobile industry in the US, while there are many other alternatives globally, but it will surely bound to create a major demand and supply gap.

Talking about the views of major car companies on this situation, Toyota, Ford and General Motors are not too concerned about this issue and has also said that there isn’t any immediate threat to the production. However, companies like Hyundai, BMW and Kia have issued that they are closely monitoring this situation. It is still not known that will this situation affect the Indian automobile market or not but a global shortage isn’t a good news for any market in the world.

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