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Wednesday, 21 July 2021 20:29

Semiconductor Shortages Halt BMW, Daimler Production Lines

Written by Joey Klender, Teslarati

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The global semiconductor shortage is halting production lines of both BMW and Daimler’s facilities in Germany.

The shortages, which have widely affected nearly every automaker in the world, are continuing to make a dent in the production of both internal combustion engines and electric vehicles, making the continuing issue a widespread worry across the automotive sector.

 

BMW announced the semiconductor shortage affected production by around 10,000 units in mid-July, and the problems were expected to continue into the following week. A spokeswoman for the German automaker announced it had temporarily stopped production or cut back shifts at three plants in its home country, along with additional facilities in Britain, the Netherlands and Austria.

 

Earlier in July, BMW also announced the shortages had affected the production of around 30,000 vehicles so far in 2021. The company delivered 2.3 million cars last year.

 

Daimler is also having trouble with the shortage, and it’s affecting the company’s production lines at several locations in Europe.

 

Daimler seems to be more transparent about the semiconductor issues and stated it expects the supply chain shortages to last into 2022, according to CFO Harald Wilhelm. “We would certainly have built more cars if we had more chips,” he said.

 

Daimler CEO Ola Källenius said the shortage “is a fixable problem,” he said on a conference call with analysts and investors July 21, according to Reuters

 

Källenius said increased visibility into how the issue would be solved is among the top priorities for his company. Knowing how the chip suppliers plan to increase production would alleviate many of the company’s concerns, he said.

 

The shortage temporarily halted...


...assembly lines at the company’s plant in Sindelfingen. This plant is responsible for producing the all-electric Mercedes-Benz EQS, and the assembly lines for this vehicle were affected by a chip supplier shutdown in Malaysia, the New York Times reported.

 

Daimler’s financial status did not take a hit from the decrease in production or the chip shortage. The automaker reported a net profit of $4.37 million during its Q2 2021 Earnings results, a far cry from the $2.25 million it lost during Q2 2020.

 

We thank Teslarati for reprint permission.

 

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