BMW unable to build 10,000 cars due to chips shortage

BMW unable to build 10,000 cars due to chips shortage

The BMW Group has revealed that nearly all of its manufacturing plants in Germany are affected by the ongoing semiconductor shortage, and has thus far prevented it from completing the production of 10,000 cars, Reuters reports.

Earlier in the month, BMW production board member Milan Nedeljkovic said that further shortfalls remain a possibility, and that the current semiconductor supply is at a very critical stage. “The outlook for the second half of the year, too, remains critical. The initial assumption, that it will be brought under control fairly soon and be covered more or less in the first half of the year, is difficult.”

Despite the shortcomings, the group posted record sales with 1,339,080 cars sold globally in the first six months of the year. That figure is a historic high, representing a 39.1% increase over 1H 2020, and a 7.1% increase compared to pre-Covid 1H 2019. All brands under its wing reported higher sales as well.

BMW unable to build 10,000 cars due to chips shortage

Meanwhile, Jaguar Land Rover recently said that the chip crunch is presently “very dynamic and difficult to forecast,” and expects the challenging situation to remain well through 2022. It is also expecting Q2 2021 deliveries to be “worse than initially thought.”

Other automakers such as Renault, Nissan, Hyundai and Volkswagen also warned of shrinking inventories due to the supply crisis, which began last December when demand for personal computing devices skyrocketed amid persistent pandemic lockdowns. A factory fire at a major manufacturer in Japan, unusually frigid weather in the US and an extended drought in Taiwan further exacerbated the crisis.

So far, analysts say the shortage has caused millions of vehicles slashed from the production lines all over the world. Consulting firm AlixPartners in May forecasted that the crisis will cost the industry US$110 billion (RM461 billion) in lost sales, forcing many car manufacturers to overhaul their strategy with electronic components.

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Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • Celup King on Jul 23, 2021 at 6:21 pm

    BMW can learn a thing or two from P2 to avoid disruption.

    Like or Dislike: Thumb up 2 Thumb down 2
    • Like taking good cars, removing every feature, dumbing down the cars and selling them at cutthroat prices? Oh yeah, they could do that … if they don’t care about their branding, which P2 certainly don’t.

      Like or Dislike: Thumb up 6 Thumb down 1
    • you cant compare p2 to bmw. bmw need to supply many country where as p2 main market is only malaysia

      Like or Dislike: Thumb up 1 Thumb down 0
  • Celup King on Jul 24, 2021 at 9:35 am

    If car production can only resolve this chip shortages, which is affecting all car makers globally, the recovery timeframe will extend well into 2022.
    By that time,many car dealerships would have folded.
    Many sales advisors would be selling nasi lemak/ sauerkrauts instead of cars,by the roadside.
    There must be a way out fast forward,in terms of faster chip production,n building more plants.
    If not,global car brands can celebrate Christmas this year with a skeleton handful of dealerships left.
    Make no mistake,there will definitely not be a memorable new year countdown on 31 dec 2021.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Semi-Value (Member) on Jul 24, 2021 at 3:09 pm

    i wonder if this is just a scam by carmakers to keep car prices high

    Like or Dislike: Thumb up 2 Thumb down 0
 

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