The global chip shortage that is keen upon disrupting global automobile production can possibly continue to remain a pain causing factor till 2022 and even stretch up to 2023, says a leading person from the German automotive industry.
Covid brought about lot of pressure and hardships for the automobile industry, which needed a complete overhaul of its supply chain, said Daimler chairman Ola Källenius.
Global Semiconductor Chips Shortage
The supply of semiconductor chips has been unable to keep up with the industry needs across many industries.
This includes automobile manufacturing units, which showed a rapid recovery from the pandemic.
The shortfall in supply of semiconductor chips has led to a closure of assembly lines in Malaysia and “will have a significant impact on production and sales in the third quarter”, Mr Källenius, who is also head of Mercedes-Benz, told the BBC at the International Mobility show in Munich.
Shortages To Last Till 2023
“Chip manufacturers say this will bleed in 2022 from a business and infrastructure perspective and will gradually proceed to improve,” he added.
This means that the shortages may end in 2023, but “hopefully it will not be at the extreme level of difficulty we have had here in the last few months”, he said.
Mr Källenius said Covid had been a “stress test” and a “traffic jam” in the automotive industry. It will take a while before everything goes away and we are back to normal again, he added.
“But we will learn from this stress test and look even deeper into all the tiers of the supply chain to make the system more robust,” he said.
