automakers will continue to suffer in 2021

If all industries are affected by the shortage of semiconductors, they are not all equal in the face of the problem and the automotive world is paying the price. In barely twelve hours, three major manufacturers – BMW, Ford and Honda – announced plant shutdowns, explicitly citing the shortage of chips. Joining Jaguar, Land Rover, Nissan, Volvo, Mitsubishi and Toyota, who had already done the same a few weeks before.

If the shortage affects tech champions like Apple, which has warned that the production of certain products like iPads or Macs could be affected, the fallout is much less serious than for automakers. Because besides the fact that their margins are lower, car makers are doubly handicapped in this race for semiconductor production lines.

According to an analyst interviewed by Bloomberg, the supply is ” a fight “Everyday, where each manufacturer must make his suppliers understand” that it is important for him ».
The concern is that with chip volumes both much lower than those of the “tech” industries and older manufacturing processes with little prospect of increased volumes, automakers are not the best bidder.

« For semiconductor founders, the automotive industry is not seen as a key customer and this puts the automotive industry in a much more difficult position to secure their supplies. », Sinks a second analyst.

Also to discover in video:

Also to discover in video:

With manufacturers like Ford announcing at least 1.1 million fewer vehicles compared to forecasts – and a shortfall of at least $ 2.5 billion! – the picture is gloomy for the auto world.

The problem is that the horizon remains dark.

« The second trimester is going to be even harder than the first », Comments a Korean analyst. Adding that ” the shortage problem could ultimately last longer (as expected, ed), maybe even in the current in the next year ».

The current crisis has at least had the benefit of making the automotive giants understand the precariousness of their dependence on semiconductors. Let us hope for them that they draw the consequences.

Source : Bloomberg