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Chip suppliers: the automotive industry lacks cores because of their misestimation of demand

by:Yisheng      2021-06-06

According to foreign media reports, due to global chip shortages, automakers such as Ford, Daimler and Audi are also planning to reduce German plant output after Volkswagen.



Due to the shortage of chips, Ford said that its Saarlouis plant in Germany will stop production from January 18 to February 19. The plant is responsible for the production of Ford’s compact car Focus. The company said in an email statement: 'When production is restarted, we will give priority to the production of cars ordered by consumers.'


Audi will reduce working hours at its Ingolstadt and Neckarsulm plants from January 18th to January 29th. The production of A4 and A5 models will be affected. influences. However, Audi said that this adjustment will not affect the production of Q2 and A3 at the Ingolstadt plant, and neither will the production lines of A6, A7, A8, R8 and Audi e-tron GT at the Neckarsum plant. affected.


For the same reason, Audi said that from January 18 to January 29, its San Jose Chiapa plant in Mexico will implement a single-shift system; from February 1 to February 12 on Wednesday to On Friday, a two-shift system will be implemented.


Similarly due to supply problems, Daimler is reducing Mercedes-Benz's production, but will give priority to the production of Mercedes-Benz electric vehicles and high-margin models (such as the S-Class). Daimler will reduce the output of compact car plants such as its Rastat and Bremen plants in Germany and the Keskimet plant in Hungary.


On January 13, Volkswagen stated in a statement that it will reduce the production of Tiguan, Touran and SEAT Tarraco models at its Wolfsburg plant in Germany. From January 18 to January 29, Volkswagen's Emden plant in Germany will also reduce worker hours.


BMW said it has not been affected by the shortage of chips so far.



Parts suppliers have also been hit by supply bottlenecks. Both Bosch and Continental stated that the supply of semiconductor components to automotive suppliers has been affected. Bosch said: “We are in close communication with consumers and suppliers on this every day, and we are working hard to improve the supply situation.” German lighting and electronics manufacturer Hella said that it has suspended operations of some production lines.


Chip manufacturers believe that automakers should be partly responsible for the supply disruption. NXP Semiconductors said: 'Some customers placed orders too late, which caused us not to deliver to some regions in time.' An NXP spokesperson said: 'It takes three months or more for complex chips to be produced from production to delivery.'

When the first wave of the epidemic broke out last year, auto factories closed down, demand dropped sharply, and automakers cut orders for chips. Now, the auto industry is showing a recovery trend. However, automakers and suppliers are competing with smart phone manufacturers such as Apple and Samsung for chips, and the latter are increasing chip orders.


Mike Hogan, head of GlobalFoundries Semiconductor’s automotive business, said that it is “very difficult” to supply chips to the automotive industry in the near future. Part of the reason is that the lengthy production process in the semiconductor industry means that customers are making mistakes. Demand expectations are punished. Hogan said that GlobalFoundries is operating the factory at an unprecedented speed and is giving priority to producing chips for cars to meet demand.

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