Chip Shortage

Action points

1. Forecasts are essential and any changes must be communicated to avoid any costly inefficiencies. Sharing of production schedules in real time

 

2. Adjust current service level requirements as reduced volumes and demand peaks do not allow cost-effective operations

 

3. Support move to 3 or 4-day week operations, or reduced shifts/operating hours where not possible, in compounds and terminals until volumes recover

 

4. Respect the payment terms as cashflow has become critical for many operators

 

5. Recognise the need for survival strategies to be jointly developed between customers and suppliers

Consult the ECG Business Intelligence Reports

The semiconductors (microchip) crisis hit Europe in December 2020 and since then has been disrupting production in several industries, including automotive. In fact, semiconductors are widely used in vehicle production and they are particularly present in electric vehicles.

ECG is monitoring the latest news on the topic and recently published a Press release and two Business Intelligence Reports.

Read the latest ECG Press releases

”Material Shortages disrupt automotive supply chain”

Download

”Chipping away at it”

Download

Latest news

Renault sees bigger production hit from chip shortage, report says

Source: Automotive News Europe, 2021-10-20

Renault expects to produce at least 300,000 fewer vehicles in 2021 year due to a global shortage in semiconductor chips, three sources close to the automaker told Reuters, a much bigger hit than previ…

Read more

Audi extends production stops due to semiconductor shortage

Source: Automotive News Europe, 2021-10-19

Audi is extending production stops due to a lack of semiconductor supplies, with most of the assembly lines at its factories in Ingolstadt and Neckarsulm in Germany at a standstill this week…

Read more

Maserati delays launch of Grecale SUV due to chip shortage

Source: Automotive News Europe, 2021-10-18

Stellantis’ luxury brand Maserati said the launch of its new SUV Grecale would be delayed to the spring of next year due to a global chip shortage…

Read more

Skoda halts output for two weeks

Source: Automotive News Europe, 2021-10-18

Skoda started a two-week cut in output on 18 October as the Czech brand contends with the global shortage of chips and other components, the company said…

Read more

Chip crunch may stretch through 2022, Bosch exec says

Source: Automotive News Europe, 2021-10-17

The supply crunch of semiconductors for automakers will likely continue through 2022, though the shortage may become less severe than what was seen in the past summer, according to a Senior Executive …

Read more

Hyundai aims to develop own chips, cut reliance on chipmakers

Source: Automotive News Europe, 2021-10-13

Hyundai Motor’s Chief Operating Officer said the automaker wants to develop its own chips to reduce reliance on chipmakers…

Read more

Chip shortage: German car transporters fear for their existence

Source: The Handelsblatt, 2021-10-11

The serious bottlenecks in global semiconductor production plunge Germany’s car transporters into an existence-threatening crisis…

Read more

ECG forced to focus on survival in industry conference – Microchip crisis – impact on vehicle logistics worsens

Source: ECG , 2021-10-07

The Finished Vehicle Logistics (FVL) industry is staring into the abyss as volumes continue to decline, demand fluctuates and forecasts are almost non-existent…

Read more

Skoda will significantly cut output until year-end

Source: Automotive News Europe, 2021-10-07

Skoda will “significantly reduce or even halt” production from 18 October untill the end of the year due to the global shortage of chips hobbling the automotive sector…

Read more

Stellantis looks at splitting off Opel plants in Germany 

Source: Automotive News Europe, 2021-10-07

Stellantis, owner of Opel, is considering splitting off the German automaker’s largest plant and a second plant, which is shutting down temporarily next week due to chip shortages…

Read more

Chip crisis crimps German, UK car sales but electric up

Source: Auto.com, 2021-10-05

New car sales in Germany and Britain sank in September as a global chip shortage bedevils the auto sector, but electric demand accelerated in both countries, data showed on 5 Octob…

Read more

Volvo sales fall 30% in September as chip crisis weighs

Source: Automotive News Europe, 2021-10-04

Volvo Car’s monthly sales fell 30% to 47,223 in September, dented by the global component shortage, the automaker said in a statement…

Read more

Audi CEO sees chip shortage as ‘perfect storm’

Source: Automotive News Europe, 2021-10-04

Audi, Volkswagen Group’s biggest profit contributor, has to troubleshoot on a day-to-day basis to tackle an ongoing shortage of auto chips, CEO Markus Duesmann said…

Read more

Stellantis prioritises making EVs in midst of chip shortage

Source: Automotive News Europe, 2021-10-02

With only so many semiconductors to work with, Stellantis is putting electric cars before combustion-engine vehicles as consumers respond to sweeteners including significant subsidies…

Read more

August car production falls as global chip shortage continues to bite

Source: SMMT, 2021-09-30

British car production falls -27…

Read more

Opel will close Grandland X plant in Germany on chips shortage

Source: Automotive News Europe, 2021-09-30

Opel will close its plant in Eisenach, Germany, from next week until the end of the year because of the global semiconductor shortage…

Read more

BMW raises profit forecast as higher car prices counter chip woes

Source: Automotive News Europe, 2021-10-01

BMW raised its profit expectations for this year after higher car prices outweighed a worsening semiconductor shortage that is hampering output across global automakers…

Read more

France eyes control over chip agenda in EU-US tech alliance

Source: Politico, 2021-09-29

Top EU and US officials are set to meet in Pittsburgh on 29 September to inaugurate the new Trade and Tech Council (TTC), amid ongoing disruption to the global supply chain of microchips…

Read more

Stellantis criticised by French unions over furlough scheme to cushion chip shortage

Source: Automotive News Europe, 2021-09-29

Two leading trade unions at Stellantis criticised the way the automaker is implementing a furlough scheme aimed at mitigating the impact of a fall in output brought on by a global chip shortage…

Read more

“The semiconductor crisis has not peaked yet,” warns Andrew Austin

Source: Automotive purchasing and supply chain, 2021-09-27

The widespread effect of the semiconductor crisis on the automotive sector has been well documented of late, with many manufacturers halting production or altering vehicle specs in response to the sho…

Read more

VW cuts output at Wolfsburg plant again on chip shortage

Source: Automotive News Europe, 2021-09-23

Volkswagen will reduce production next week at its main plant in Wolfsburg, Germany, as the global shortage of microchips and electronic components continues to hit the automaker…

Read more

Russia sales fall 17% in August on chip shortage

Source: Automotive News Europe, 2021-09-21

New-car sales in Russia fell 17% in August as the global shortage of semiconductors continued to squeeze the volume of vehicles available on the market…

Read more

Microchip shortage threatens finished vehicle carriers, warns ECG

Source: Automotive Logistics, 2021-09-21

The Association of European Vehicle Logistics (ECG) has warned that the “very existence” of finished vehicle carriers is threatened by the ongoing global microchip shortage…

Read more

Auto forecaster cuts outlook by most since chip shortages emerged

Source: Automotive News Europe, 2021-09-17

IHS Markit, whose production projections are cited by automakers, suppliers and research analysts the world over, just took its biggest chop yet to estimates that have been falling all year due to the…

Read more

Infineon opens Austrian chip plant ahead of schedule

Source: Automotive News Europe, 2021-09-17

Infineon Technologies opened a €1…

Read more

Europe’s car sales go from uninspiring to ugly amid chip crunch

Source: Automotive News Europe, 2021-09-16

Auto sales are deteriorating in Europe, with months of meek recovery giving way to deliveries that no longer even measure up to last year’s pandemic-depressed results…

Read more

VW’s SEAT to Extend Assembly Curbs in Spain Into 2022 on Chip Shortage

Source: US News, 2021-09-16

Volkswagen’s Spanish unit SEAT plans to extend partial car assembly suspensions at its plants near Barcelona well into 2022 because of global semiconductor supply bottlenecks, the company said in…

Read more

Infineon plant downed by power outage in Germany could worsen chip shortage

Source: Automotive News Europe, 2021-09-16

One of German auto chipmaker Infineon Technologies’ most important manufacturing sites was forced to shut down after a power outage, potentially exacerbating a global semiconductor supply crunch…

Read more

Mercedes sees sales stabilising by year-end despite chip turmoil

Source: Automotive News Europe, 2021-09-15

The German automaker is pushing to retain its profitability level even as some costs such as travel expenses creep back up once the pandemic eases…

Read more

EU wants ‘Chips Act’ to rival US

Source: Politico, 2021-09-15

The European Commission “will present a European Chips Act” to catch up with world leaders on the design and production of microchips, its President Ursula von der Leyen said on 15 September…

Read more

In the waiting room: how the chip crunch is now hitting dealer sales

Source: Automotive Logistics, 2021-09-13

As semiconductor shortages hit production, most OEMs were able to satisfy demand by running down inventory, but worsening supply shortages are starting to choke off new vehicle registrations, with imp…

Read more

Toyota cuts output again on shortage of chips, parts

Source: Automotive News Europe, 2021-09-10

Toyota will slash global production again in October by 330,000 units, as the pandemic and global shortage of automotive microchips continue to bite…

Read more

Semiconductor crisis overshadows big car show

Source: Politico, 2021-09-06

One of Europe’s biggest car shows got underway on 6 September attempting to put a positive spin on an industry clobbered by the pandemic, but there’s another huge shadow over any revival…

Read more

Intel to set aside production in Ireland for auto chips

Source: Automotive News Europe, 2021-09-08

Intel will dedicate production at its plant in Ireland for the manufacture of chips for automakers as the company pushes into a growing market currently buffeted by shortages that have crippled vehicl…

Read more

Microchip shortage – economic impact worse than Covid – Unpredictability of new crisis threatens survival of vehicle logistics sector

Source: ECG , 2021-09-08

The Finished Vehicle Logistics (FVL) industry faces major new challenges…

Read more

Gartner lays out how OEMs can navigate the global chip shortage

Source: Automotive Logistics, 2021-09-06

The semiconductor shortage is hitting automotive production around the world and that disruption is going to continue into 2022…

Read more

Mercedes, VW, BMW warn chip shortage could last until 2023

Source: Automotive News Europe, 2021-09-05

The global semiconductor shortage may not entirely go away in 2022 and could take until 2023 to be resolved Executives said at the IAA Munich auto show…

Read more

Daimler expects ‘significant’ Q3 sales hit from chip shortage

Source: Automotive News Europe, 2021-09-02

Daimler expects significantly lower sales of Mercedes cars through the end of September due to the ongoing chip shortage…

Read more

Jeep, Fiat output at Italian plant to remain idle due to lack of microchips

Source: Automotive News Europe, 2021-08-31

Stellantis will extend by one week to 13 September a planned production stoppage at its Melfi plant in southern Italy due to a global microchip shortage, FIM-CISL union said on 31 August…

Read more

Chip crunch hits Suzuki’s Hungary production

Source: Automotive News Europe, 2021-08-31

Suzuki will halt production at its factory in Hungary for two weeks in September due to a global shortage of microchips…

Read more

Renault to extend Spanish output curbs on chip shortage

Source: Automotive News Europe, 2021-08-31

Renault will extend partial stoppages at its three assembly plants in Spain to the end of the year because of the global shortage of microchips…

Read more

Production halted at PSA, Opel, Fiat plants on chip shortage

Source: Automotive News Europe, 2021-08-30

Stellantis is extending production halts at plants in Europe due to a shortage of microchips…

Read more

Daimler cuts production as chip shortage bites

Source: Automotive News Europe, 2021-08-27

Daimler is extending reduced working schedules at Mercedes-Benz factories in Germany and Hungary as the global shortage of semiconductors continues to impact automakers…

Read more

Stellantis will halt ouput at Europe’s biggest van plant on chip shortage

Source: Automotive News Europe, 2021-08-27

Production at Stellantis’s Sevel plant in Italy, which makes light commercial vehicles for Fiat, Peugeot and Citroen, will be halted due to a shortage of chips…

Read more

GM changes strategy in the scramble for secure battery and chip supply

Source: Automotive Logistics, 2021-08-26

General Motors is looking for supplier partnerships and digital tools to secure the localised supply of semiconductors and lithium-ion batteries in North America, currently two of the most critical pr…

Read more

Covid costs Toyota 40% production loss in September

Source: Automotive Logistics, 2021-08-24

Parts shortages caused by the spread of Covid-19 in South-East Asia, compounded by ongoing semiconductor shortages, have forced Toyota to cut September’s global production by 40%…

Read more

Volvo to idle Gothenburg plant again over chip shortage

Source: Automotive News Europe, 2021-08-23

Volvo Cars will halt production at its Swedish plant in Torslanda, on the outskirts of Gothenburg, during next week due to the shortage of semiconductor chips, the automaker said…

Read more

VW’s Seat partly halts output due to chip shortage

Source: Automotive News Europe, 2021-08-23

Volkswagen Group’s Spanish brand Seat has partly halted car assembly at its Martorell plant near Barcelona due to the global semiconductor supply bottleneck, the company said…

Read more

VW cuts output at Wolfsburg plant as chip shortage bites

Source: Automotive News Europe, 2021-08-20

Volkswagen Group plants are set for a bumpy restart after the traditional summer break as the car industry remains in the grip of a chip shortage that most recently engulfed Toyota…

Read more

Ford will cut output again at Cologne plant on chip shortages

Source: Automotive News Europe, 2021-08-19

Ford has cut production again at its Cologne plant in Germany due to delivery problems with semiconductors, the automaker said…

Read more

VW says chip crunch may cause further production cuts

Source: Automotive News Europe, 2021-08-20

Volkswagen may need to cut production further due to a semiconductor supply crunch, the automaker said…

Read more

Stellantis says chip crunch will hit output at two French car plants

Source: Automotive News Europe, 2021-08-20

Stellantis said it will halt production at its plant in Rennes, western France, next week due to a global chip shortage…

Read more

Material shortages are forcing a supply chain rethink in automotive

Source: Automotive Logistics, 2021-08-19

Widespread shortages in range of materials used to make cars are impacting production but OEMs and suppliers are responding by accelerating the development of alternative closed-loop supply chains…

Read more

Geely warns COVID-19, chip shortage pose ‘significant threat’ to earnings

Source: Automotive News Europe, 2021-08-18

China’s Geely Automobile Holdings said its first-half net profit grew 4%, as sales in the world’s biggest auto market recover from COVID-19 pandemic lows…

Read more

Musk calls Renesas and Bosch’s chip supply ‘problematic’

Source: Automotive News Europe, 2021-08-12

Tesla CEO Elon Musk called out two of the world’s biggest suppliers of automotive chips for inhibiting the electric-car maker’s production…

Read more

Volvo halts production at Swedish plant on chips shortage

Source: Automotive News Europe, 2021-08-12

Volvo Cars will temporarily stop production at its Swedish plant near Gothenburg due to the shortage of semiconductor chips…

Read more

Continental cuts 2021 vehicle production outlook on chips crunch

Source: Automotive News Europe, 2021-08-06

Continental cut its growth forecast for the production of passenger and light commercial vehicles in 2021 due to a chip supply crunch it sees persisting throughout the year…

Read more

Infineon production outages compound chip supply crunch

Source: Automotive News Europe, 2021-08-05

Chipmaker Infineon Technologies said production outages at two of its plants had hit deliveries to core automotive clients, as the auto industry battles the worst supply crunch in three decades…

Read more

British car manufacturing recovery hampered by ‘pingdemic’ and chip shortages

Source: Automotive Logistics, 2021-08-03

UK vehicle production and exports are rising from pandemic lows, but the sector is facing serious challenges in supply chain bottlenecks and labour shortages because of the ne…

Read more

BMW posts strong Q2 earnings but warns on chip shortage

Source: Automotive News Europe, 2021-08-03

BMW raised its profit forecast for 2021 after strong quarterly results, but warned that the global semiconductor shortage and rising raw materials prices would impact its performance in the second hal…

Read more

French sales fall 35% in July on chip shortage, COVID

Source: Automotive News Europe, 2021-08-02

Volkswagen Group’s top three brands have pointed to an ongoing shortage of automotive chips that could intensify in the coming months, highlighting the industry’s difficulty in tackling the is…

Read more

Porsche, Audi, VW brands flag chip risk in months ahead

Source: Automotive News Europe, 2021-08-02

Volkswagen Group’s top three brands have pointed to an ongoing shortage of automotive chips that could intensify in the coming months, highlighting the industry’s difficulty in tackling the is…

Read more

UK production rises 31% in first half but sector warns of chip shortage

Source: Automotive News Europe, 2021-07-30

UK car production rose by nearly a third in the first half of 2021 from last year’s slump but remained down on the five-year average as the sector warned that COVID-19 continues to cause staffing…

Read more

German carmakers partially shut down amid semiconductor shortage

Source: EURACTIV, 2021-07-28

The supply shortage is forcing Daimler to send thousands of employees on short-time work at several locations across Germany, the car manufacturer announced on 27…

Read more

Mercedes cuts production in Germany, Hungary on chip shortages

Source: Automotive News Europe, 2021-07-27

Daimler is reducing Mercedes-Benz production at three plants in Germany and temporarily halting output in its factory in Hungary due to a shortage of semiconductors…

Read more

Skoda will cancel more shifts due to chip shortage, union says

Source: Automotive News Europe, 2021-07-22

Skoda will cancel several shifts ahead of the automaker’s annual general two-week leave, as a lingering shortage of semiconductors blocks production, trade unions said…

Read more

Stellantis CEO Tavares says chip shortage will easily drag into 2022

Source: Automotive News Europe, 2021-07-21

The global semiconductor chip shortage that has hit automakers around the world and constrained vehicle production will easily drag into 2022, Stellantis CEO Carlos Tavares said…

Read more

Daimler cuts car-sales outlook on chip shortage

Source: Automotive News Europe, 2021-07-21

Daimler said early-year growth for its main Mercedes-Benz division will be wiped out by the global semiconductor shortage that the automaker expects to put a damper on the second half…

Read more