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Supply of automotive chips continues to be scarce

AmericaBMW warns chip supply could continue to be extremely low in the second half of 2021.

As the shortage of semiconductors to make chips grows, hopes for a temporary solution to supply problems are dwindling. BMW thinks the semiconductor shortage will continue through the end of the year.

The supply of semiconductors is really important, said Milan Nedeljkovic, head of BMW production: “The outlook for the second half of the year will be very important. The initial assumption is that it will be under control. earlier in the first half of the year, is very difficult.”

Production line of a car model.

Many automakers have seen significant sales increases in the first two quarters of 2021, as the market boomed with the easing of Covid-19 restrictions. At the same time, the supply is also shrinking as dealers are running out of new cars to replace the ones they already sell.

Dealers across the United States have reported that customers come and buy new cars without negotiation, and even used cars with a high volume of buyers sell for more than new.

Nedeljkovic said that BMW’s production loss amounted to about 30,000 units this year and the possibility of a car shortage could also occur in the second half of the year.

To complicate matters further, automakers are releasing increasingly technologically advanced cars that require multiple microchips. To solve this problem, some automakers have had to sell cars with reduced features just to be able to deliver to dealers.

Without a steady supply of microchips and low inventories, decisions could soon become more difficult for automakers.

Sunshine (according to the Carscoops)


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