Some news from Auto Motor Und Sport about the problems Car Manufacturers are facing due to Chip and Semi Conductor Shortages.
What Chip companies world wide are facing production issues?
UPDATE:
Short-time work, long delivery times, models that can no longer be ordered, half-finished cars on stockpile. The semiconductor crisis is currently having a massive impact on the auto industry and the auto market. A relaxation is likely in 2023 or not until 2024. Here is the current development in the chip shortage ticker.
8/31/2021 - Stellantis has to stop production in several plants
The car manufacturer Stellantis, which emerged from the merger of Groupe PSA (PSA) and Fiat Chrysler Automobiles (FCA), has to pause production in several of its North American plants for at least a week due to the semiconductor crisis. The plants affected by the closings are Sterling Heights (RAM 1500) in Michigan, Belvidere (Jeep Cherokee) in Illinois, and Windsor (Chrysler Pacifica and Voyager) and Brampton (Dodge Challenger, Charger and Chrysler 300) in the Canadian Province of Ontario.
8/30/2021 - VW Nivus without infotainment system
VW currently has to deliver the basic equipment of the Nivus without an infotainment system. The compact SUV offered in Brazil does have a screen for the driver, but there is now a black plastic plate in the center console where the infotainment touchscreen normally lights up. The reversing camera, which is part of the standard scope of the basic level, only makes sense if the retrofitting of the center console screen is possible. If you want a center console screen for your Nivus when it is delivered, you can order the 6.5-inch screen (approx. 300 euros) or the Play & Tech package (approx. 745 euros), which is subject to a surcharge. The Nivus is based on the T-Cross and will also be available in Germany as Taigo at the end of 2021.
8/30/2021 - GM pauses production of diesel engines
Due to the shortage of chips, GM has to pause production of its 3.0-liter Duramax diesel engine (LM2). The American automaker wants to resume production as soon as possible, but cannot yet estimate when this will happen. In a letter, GM encourages its dealers to offer customers either the 5.3-liter V8 petrol engine (L84) or the 6.2-liter V8 petrol engine (L87) instead of the diesel engine.
8/20/2021 - Toyota cuts production in 14 plants
The world's largest automaker Toyota has to cut its production dramatically. As the Japanese daily "Nikkei" reports, Toyota will only be able to produce around 500,000 vehicles in September because of the shortage of semiconductors. According to the report, 14 plants worldwide are affected. Production in North America, China and Euro will likely be cut by ten thousand cars. According to the Reuters news agency, the Toyota joint venture in Guangzhou, China, no longer produces on a production line.
So far, Toyota has come through the chip crisis better than other automakers, as large inventories of parts, including semiconductors, have been building up for years.
August 19, 2021 - Short-time work at Audi
In the Audi plants in Ingolstadt and Neckarsulm, 10,000 employees are on short-time work. All the belts in the main plant in Ingolstadt will be idle until August 30th, 2021. While two lines can no longer produce due to the lack of semiconductors, line 1 is being converted to production for the Audi Q6 E-Tron. 6,000 Audi workers are on short-time work here. Around 4,000 workers are affected at the Neckarsulm plant. Audi has also registered a spa work for September. Since the beginning of 2021, around 50,000 vehicles could not be built due to missing components.
August 19, 2021 - Mercedes discontinues V8 models in the USA
Mercedes is suspending sales of many V8 models in the United States . A total of 17 models (see photo show) are affected by the sales ban. One of the reasons given is "problems in the supply chain", particularly with semiconductors.
8/18/2021 - Second largest port in China closed
Due to the corona-related closure of a terminal in China's second largest port, Ningbo, global supply chains will be disrupted. Over 50 container ships are already waiting there to be processed. On 8/10 a dock worker tested positive for Corona, the terminal was largely closed. The partial reopening is not before 8/24. planned. Large shipping companies now have to switch to other ports, which leads to delays there.
August 17, 2021 - Basic models of VW ID.3 and Golf can no longer be ordered
The basic models of the Golf and the ID.3 cannot be ordered from Volkswagen due to the semiconductor crisis. Anyone who has already ordered one of these vehicles must expect a waiting period of four months. New orders will only be possible again from 2022.
https://www.auto-motor-und-sport.de...el-vw-golf-id3-basismodelle-nicht-verfuegbar/
August 16, 2021 - Daimler with short-time work
According to Daimler, it is constantly adapting its production facilities in Rastatt, Kecskemét and Bremen, for example, to the available delivery options. In Rastatt and Bremen, however, there is also short-time work, we for the plant in Sindelfingen on August 19 and 20. According to the Stuttgarter Zeitung, the short-time work in Sindelfingen mainly affects the production of the E-Class. The production of the S-Class and the EQS in Factory 56 continues without restrictions.
July 22, 2021 - BMW cannot build 40,000 cars
BMW is not as badly affected by the semiconductor crisis as, for example, the large American automakers Ford and GM, but Bavaria is also increasingly struggling with delivery bottlenecks. BMW officials have confirmed to Reuters news agency that almost all German production sites are suffering from the crisis. BMW is currently unable to finish building around 10,000 cars because the corresponding processors are missing. The Bavarian manufacturer has already been unable to produce 30,000 cars due to the lack of chips. Production at the important Spartanburg plant in the US state of South Carolina, where most of the BMW SUV models roll off the assembly line, should, however, be secured until the end of 2021.
Semiconductors and automobiles
There can be more than 100 semiconductor elements in new cars. If even a single one is missing, the production of the corresponding model can be stopped.
It is currently difficult to assess how long the semiconductor shortage will last. Michael Hogan, senior vice president at the large semiconductor contract manufacturer Globalfoundries, estimates that it could take 20 to 25 weeks from an order from an automaker to actually deliver. Since Globalfoundries has already been a major supplier to the auto industry, Hogan emphasizes that everything is being done to prioritize production for the auto industry.
The economic damage
It is becoming more and more apparent that the auto industry will probably have to struggle with the semiconductor crisis for a long time to come. The analysis company Gartner now expects a recovery for certain sub-areas in 2023 or even 2024 at the earliest. Only then will new production capacities be available, especially for memory chips. The auto industry had a particularly difficult time during the semiconductor crisis, as it was dealing with a profound technological change on the one hand and the effects of the corona crisis on the other. In addition, the automotive industry needs special chips with increased reliability - it would be more difficult to find an alternative for such processors during production.
At the same time, manufacturers of electronics required for home offices have ordered significantly more processors in order to be able to build a sufficient number of laptops, webcams, tablets and 5G smartphones. After all, it is not only company employees who need high-performance electronic equipment for their workplace at home, the companies themselves have had to upgrade in this area, in some cases massively.
CONCLUSION
Times of rapid change are leaving deep traces in industry: The widespread introduction of home offices due to the corona pandemic, which is still rampant, is causing a surge in demand for electronic devices such as computers, monitors and tablets. Semiconductor chips work in these devices. And semiconductor chips have also been used increasingly in cars for decades - a new car can now contain over 100 of these components.
The processors in the popular home office electronics are missing for car production. An increase in the production of semiconductor components is necessary to end the supply crisis - the companies in question are working flat out. Nevertheless, the semiconductor shortage is likely to persist for a while, which may not lead to increased vehicle prices, but at least to significantly longer delivery times.
What Chip companies world wide are facing production issues?
UPDATE:
Short-time work, long delivery times, models that can no longer be ordered, half-finished cars on stockpile. The semiconductor crisis is currently having a massive impact on the auto industry and the auto market. A relaxation is likely in 2023 or not until 2024. Here is the current development in the chip shortage ticker.
8/31/2021 - Stellantis has to stop production in several plants
The car manufacturer Stellantis, which emerged from the merger of Groupe PSA (PSA) and Fiat Chrysler Automobiles (FCA), has to pause production in several of its North American plants for at least a week due to the semiconductor crisis. The plants affected by the closings are Sterling Heights (RAM 1500) in Michigan, Belvidere (Jeep Cherokee) in Illinois, and Windsor (Chrysler Pacifica and Voyager) and Brampton (Dodge Challenger, Charger and Chrysler 300) in the Canadian Province of Ontario.
8/30/2021 - VW Nivus without infotainment system
VW currently has to deliver the basic equipment of the Nivus without an infotainment system. The compact SUV offered in Brazil does have a screen for the driver, but there is now a black plastic plate in the center console where the infotainment touchscreen normally lights up. The reversing camera, which is part of the standard scope of the basic level, only makes sense if the retrofitting of the center console screen is possible. If you want a center console screen for your Nivus when it is delivered, you can order the 6.5-inch screen (approx. 300 euros) or the Play & Tech package (approx. 745 euros), which is subject to a surcharge. The Nivus is based on the T-Cross and will also be available in Germany as Taigo at the end of 2021.
8/30/2021 - GM pauses production of diesel engines
Due to the shortage of chips, GM has to pause production of its 3.0-liter Duramax diesel engine (LM2). The American automaker wants to resume production as soon as possible, but cannot yet estimate when this will happen. In a letter, GM encourages its dealers to offer customers either the 5.3-liter V8 petrol engine (L84) or the 6.2-liter V8 petrol engine (L87) instead of the diesel engine.
8/20/2021 - Toyota cuts production in 14 plants
The world's largest automaker Toyota has to cut its production dramatically. As the Japanese daily "Nikkei" reports, Toyota will only be able to produce around 500,000 vehicles in September because of the shortage of semiconductors. According to the report, 14 plants worldwide are affected. Production in North America, China and Euro will likely be cut by ten thousand cars. According to the Reuters news agency, the Toyota joint venture in Guangzhou, China, no longer produces on a production line.
So far, Toyota has come through the chip crisis better than other automakers, as large inventories of parts, including semiconductors, have been building up for years.
August 19, 2021 - Short-time work at Audi
In the Audi plants in Ingolstadt and Neckarsulm, 10,000 employees are on short-time work. All the belts in the main plant in Ingolstadt will be idle until August 30th, 2021. While two lines can no longer produce due to the lack of semiconductors, line 1 is being converted to production for the Audi Q6 E-Tron. 6,000 Audi workers are on short-time work here. Around 4,000 workers are affected at the Neckarsulm plant. Audi has also registered a spa work for September. Since the beginning of 2021, around 50,000 vehicles could not be built due to missing components.
August 19, 2021 - Mercedes discontinues V8 models in the USA
Mercedes is suspending sales of many V8 models in the United States . A total of 17 models (see photo show) are affected by the sales ban. One of the reasons given is "problems in the supply chain", particularly with semiconductors.
8/18/2021 - Second largest port in China closed
Due to the corona-related closure of a terminal in China's second largest port, Ningbo, global supply chains will be disrupted. Over 50 container ships are already waiting there to be processed. On 8/10 a dock worker tested positive for Corona, the terminal was largely closed. The partial reopening is not before 8/24. planned. Large shipping companies now have to switch to other ports, which leads to delays there.
August 17, 2021 - Basic models of VW ID.3 and Golf can no longer be ordered
The basic models of the Golf and the ID.3 cannot be ordered from Volkswagen due to the semiconductor crisis. Anyone who has already ordered one of these vehicles must expect a waiting period of four months. New orders will only be possible again from 2022.
https://www.auto-motor-und-sport.de...el-vw-golf-id3-basismodelle-nicht-verfuegbar/
August 16, 2021 - Daimler with short-time work
According to Daimler, it is constantly adapting its production facilities in Rastatt, Kecskemét and Bremen, for example, to the available delivery options. In Rastatt and Bremen, however, there is also short-time work, we for the plant in Sindelfingen on August 19 and 20. According to the Stuttgarter Zeitung, the short-time work in Sindelfingen mainly affects the production of the E-Class. The production of the S-Class and the EQS in Factory 56 continues without restrictions.
July 22, 2021 - BMW cannot build 40,000 cars
BMW is not as badly affected by the semiconductor crisis as, for example, the large American automakers Ford and GM, but Bavaria is also increasingly struggling with delivery bottlenecks. BMW officials have confirmed to Reuters news agency that almost all German production sites are suffering from the crisis. BMW is currently unable to finish building around 10,000 cars because the corresponding processors are missing. The Bavarian manufacturer has already been unable to produce 30,000 cars due to the lack of chips. Production at the important Spartanburg plant in the US state of South Carolina, where most of the BMW SUV models roll off the assembly line, should, however, be secured until the end of 2021.
Semiconductors and automobiles
There can be more than 100 semiconductor elements in new cars. If even a single one is missing, the production of the corresponding model can be stopped.
It is currently difficult to assess how long the semiconductor shortage will last. Michael Hogan, senior vice president at the large semiconductor contract manufacturer Globalfoundries, estimates that it could take 20 to 25 weeks from an order from an automaker to actually deliver. Since Globalfoundries has already been a major supplier to the auto industry, Hogan emphasizes that everything is being done to prioritize production for the auto industry.
The economic damage
It is becoming more and more apparent that the auto industry will probably have to struggle with the semiconductor crisis for a long time to come. The analysis company Gartner now expects a recovery for certain sub-areas in 2023 or even 2024 at the earliest. Only then will new production capacities be available, especially for memory chips. The auto industry had a particularly difficult time during the semiconductor crisis, as it was dealing with a profound technological change on the one hand and the effects of the corona crisis on the other. In addition, the automotive industry needs special chips with increased reliability - it would be more difficult to find an alternative for such processors during production.
At the same time, manufacturers of electronics required for home offices have ordered significantly more processors in order to be able to build a sufficient number of laptops, webcams, tablets and 5G smartphones. After all, it is not only company employees who need high-performance electronic equipment for their workplace at home, the companies themselves have had to upgrade in this area, in some cases massively.
CONCLUSION
Times of rapid change are leaving deep traces in industry: The widespread introduction of home offices due to the corona pandemic, which is still rampant, is causing a surge in demand for electronic devices such as computers, monitors and tablets. Semiconductor chips work in these devices. And semiconductor chips have also been used increasingly in cars for decades - a new car can now contain over 100 of these components.
The processors in the popular home office electronics are missing for car production. An increase in the production of semiconductor components is necessary to end the supply crisis - the companies in question are working flat out. Nevertheless, the semiconductor shortage is likely to persist for a while, which may not lead to increased vehicle prices, but at least to significantly longer delivery times.
