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Carmakers rethink production strategies to deal with global chip shortage

The shortage, due to supply problems and a surge in demand for consumer electricals during the pandemic, has hit the auto industry hard

Carmakers
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Chip suppliers need to be treated differently given their strategic importance to the industry, said Stefan Bratzel from the Center for Automotive Management.

Christina Amann | Reuters
Whether buying computer chips directly from manufacturers, reconfiguring cars, or producing them with parts missing, automakers are having to get creative to cope with the global shortage of semiconductors.
 
The shortage, due to supply problems and a surge in demand for consumer electricals during the pandemic, has hit the auto industry hard, with millions of vehicles worldwide not being produced because important parts are missing.
 
With the problem lasting longer than initially expected, manufacturers including Daimler and Volkswagen have had to rethink production strategies.
 
Car manufacturers usually buy parts from major suppliers such as Bosch and Continental, which in turn

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First Published: Nov 26 2021 | 12:54 PM IST

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