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The global semiconductor shortage interrupts production lines at BMW and Daimler factories in Germany. Shortages, which have widely affected almost every automaker in the world, continue to reduce production of internal combustion engines and electric vehicles, making this problem a widespread concern in the automotive industry.
BMW said the semiconductor shortage affected production of around 10,000 units this week and that the problems are expected to continue into next week. A spokeswoman for the German automaker said it had temporarily halted production or downsized shifts at three factories in its home country, as well as additional facilities in Britain, the Netherlands and Austria.
Earlier this month, BMW also announced that the shortages had affected production of around 30,000 vehicles so far in 2021. The company delivered 2.324 million cars last year.
However, BMW isn’t the only automaker in Germany experiencing some heat due to the semiconductor shortage. Daimler is also having problems with the shortage, and this is affecting the company’s production lines at several sites in Europe. Daimler appears to be more transparent about semiconductor issues and has said it expects supply chain shortages to last until 2022, according to CFO Harald Wilhelm. “We definitely would have built more cars if we had had more chips,” he said.
Daimler CEO Ola Källenius said the shortage “is a fixable problem,” he said Wednesday in a conference call with analysts and investors, according to Reuters. Källenius said increased visibility into how the issue would be resolved is a top priority for his business. Knowing how chip vendors plan to ramp up production would alleviate many of the company’s concerns, he said.
The shortage temporarily interrupted the assembly lines at the company’s factory in Sindelfingen. This factory is responsible for the production of the all-electric Mercedes-Benz EQS, and the vehicle’s assembly lines have been affected by the shutdown of a chip supplier in Malaysia, the New York Times reported.
Daimler’s financial position was not affected by the drop in production or the shortage of chips. The automaker reported a net profit of 3.704 million euros ($ 4.37 million) in its second quarter 2021 results, a far cry from the 1.906 million euros ($ 2.25 million) lost in the second quarter 2020.
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