Chip Shortage Will Weigh on Carmakers in 2021: Bosch

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The company, in an interaction with the Reuters, said that the bottleneck in the global supply chain had not left Bosch unscathed

Semiconductor chip shortage has probably hurt the car industry more than any other. Now in an interaction with the Reuters, Bosch’s Chief Executive Officer Volkmar Denner has pointed towards the car industry in 2021. The company has noted that despite the improvements in pandemic, only around 85 million vehicles will roll off the manufacturing lines this year.

This number, last year stood at around 78 million, while the same was 92 million in 2019. The highest during the last five years or more was in 2017 when around 98 million units were rolled of manufacturing facilities.

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Apart from the pandemic, Bosch feels that developments such as Brexit and trade tensions between China and the USA might also imapact economic developments.

GM extends productions cuts

General Motors (GM), owing to the chips shortage, has extended production cuts at three of its facilities in North America. Reuters report that customers stocking on electronics like gaming consoles and laptops has led to the deificit in the global supply of chips.

Renault and Stellantis, as reported earier, had both suspended car production at several factories as were dealing with a worldwide shortage of crucial semiconductors. Carmakers around the world have been hit by the shortage of chips used in engine management and driver-assistance systems, which mainly come from Asia and especially Taiwan.

A Ford India spokesperson, in a statement, had said that the global semiconductor shortage will impact vehicle production at Ford”s Chennai and Sanand plant in the coming months. The spokesperson further said that In Chennai, the company has pulled ahead a down week to this week due to a supplier part shortage connected to the global semiconductor shortage.

Phil Amsrud, senior principal analyst-ADAS, Semiconductors and Components, IHS Markit had earlier said that because of the cause of these constraints is the result of increasing demand from OEMs and limited supply of semiconductors, it will not be resolved until both forces are aligned. China will be the most hit in the first quarter at nearly 250,000 units, as per IHS.

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