The semiconductor shortage which is caused because of the coronavirus pandemic has swept through Asian countries which produce the chips, is expected to last the whole year that might continue to affect the auto industry negatively. Read the details.
New Delhi: The major automotive companies stated that there's no immediate end in sight to a global chip shortage that has halted assembly lines across North America and seen new car prices swell.
According to the auto chiefs, the semiconductor shortage which is caused because of the coronavirus pandemic has swept through Asian countries which produce the chips, is expected to last the whole year.
Herbert Diess, CEO of Volkswagen, told Bloomberg, “Probably we will remain in shortages for the next months or even years because semiconductors are in high demand,”.
“It will be probably a bottleneck for the next months and years to come,” he added.
The CEO of Daimler and head of Mercedes-Benz, Ola Kallenius, informed the reporters that he believes the shortage could last till 2023, whereas, Ford Europe’s Gunnar Herrmann informed CNBC that he the shortage could last until 2024.
“It’s definitely an issue which we are wrestling with,” Herrmann said, noting that despite healthy demand for vehicles, the fresh wave of chip shortages is a new crisis,” he said.
The vehicle prices are likely to remain higher than usual as factories suspend production and car dealerships struggle to fill their lots is meant by the continuous semiconductor shortage.