SHOPSMART AUTOS – CUSTOMER INFORMATION – SEPTEMBER 21, 2021 -2
Major automakers fear the global chip shortage could persist for some time
Despite the imbalances, Herrmann said Ford Europe’s incoming order bank was “fantastic” and that “demand is actually extremely strong.” Daimler’s Kallenius said he hopes the third quarter is the “trough” of the disruptions. “That seems to be the quarter that will be most significantly affected by this,” he said. “We hope that in the fourth quarter that we will start coming back up again,” Kallenius said. “But there is a level of uncertainty that we have to deal with in our production system. It needs to stay flexible.” The chip shortage has affected the automotive industry more than any other. Assembly lines have been shut down and some cars are now being shipped without features that rely on semiconductors. In the U.K., car production plummeted to a new low in July, marking the worst July performance for the industry since 1956. German technology and engineering group Bosch, which is the world’s largest car-parts supplier, believes semiconductor supply chains in the automotive industry are no longer fit for purpose. Harald Kroeger, a member of the Bosch management board, told CNBC last month that supply chains have buckled in the last year as demand for chips in everything from cars to PlayStation 5s and electric toothbrushes has surged worldwide. The CEOs of Porsche, Skoda and Seat said Tuesday that they’re also feeling the pinch when it comes to semiconductors. Porsche boss Oliver Blume told CNBC the chip squeeze is causing production line delays and that he hopes the issue will be resolved soon. “We have the situation of the semiconductors and therefore the waiting time is longer than normal,” Blume said, adding that some customers are waiting half a year or more. Thomas Schafer, the CEO of Skoda, told CNBC that Skoda has been “tremendously affected” by the semiconductor factory shutdowns in Malaysia. “Once this is done, hopefully in the next 4-5 weeks, there’s still also a basic shortage that will probably last until 2022,” he said. Seat CEO Wayne Griffiths told CNBC that the semiconductor shortage is challenging for all brands at the moment. “We’re prioritizing our Cupra models and our electric cars with the semiconductors we have to try and make sure the delivery times there remain acceptable,” Griffiths said. As of September 21, 2021 the chip shortage is still impacting the U.S. automotive market.
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