Chip shortage forces German carmakers to halt production

News  /   July

Germany

The global semiconductor shortage is disrupting production in the German car industry just as demand has started rebounding strongly from the pandemic-induced downturn. Automakers Daimler and BMW that the lack of chips had forced assembly lines to slow down or stop, cutting output by tens of thousands of vehicles and leading to longer wait times for customers.

BMW temporarily stopped production or cut back the number of shifts at three factories in Germany and one in Britain, as well as at factories owned by suppliers in the Netherlands and Austria that assemble vehicles under contract, the company said.

As a result, production fell short by 10,000 vehicles for the week, and there is likely to be a similar shortfall next week, according to a BMW spokeswoman.

Daimler has been trying to cope with chip scarcity by giving priority to its most expensive and most profitable models. But even they have been affected. Daimler had to briefly stop assembly lines at a plant in Sindelfingen, near Stuttgart, that produces Mercedes-Benz S-Class luxury cars as well as the new EQS electric vehicle.

Source: the New York Times

Image Source: Google Images

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