Semiconductor shortage to last two more years, automotive giant claims
An executive at one of the world’s biggest car makers has revealed a grim outlook for new car supply over the next 24 months.
The ongoing semiconductor shortage will likely last at least two more years, according to the chief financial officer of German car giant Volkswagen.
A lack of computer chips – used in almost all electronic devices from screens to locking system – has plagued the automotive industry since late 2020.
Crimping production and driving up prices, access to the parts has affected almost every major manufacturer.
Multiple factors have been blamed for the shortages, including factory retooling during COVID and increased demand in other sectors including computer and phone production.
While it was originally deemed to be a relatively short-term inconvenience, car makers are now preparing customers for the possibility extended wait times could remain for some time.
“The structural undersupply will likely only resolve itself in 2024,” Arno Antlitz, chief financial officer of Volkswagen, told German outlet Boersen-Zeitung over the weekend.
“Only those who can map out their battery supply chain have the advantage at scaling in electromobility. Securing the supply chain comes with that.”
Less than a day later BMW CEO Oliver Zipse told newspaper Neue Zuercher Zeitung: “I expect us to start seeing improvements at the latest next year, but we will still have to deal with a fundamental shortage in 2023.”
Supply of new cars in Australia has dropped significantly over the past two years, while prices and wait times have steadily ballooned over the same period.
Some manufacturers – including Ford and Peugeot – have taken to removing electronic features to preserve parts and maintain production lines.
You can read Drive’s full coverage of the ongoing semiconductor shortages by clicking here.