Chip Crisis Easing for Some Automakers

June 9, 2022

The weakened economy, in conjunction with inflation, has allowed automakers an opportunity to use decreased chip demand in other industries to their own advantage. 

June 9, 2022—The global semiconductor chip shortage that has had an effect on every aspect of the automotive industry could be easing for the near future. 

According to Bloomberg, Mercedes Benz AG, Daimler Truck Holding AGE, and BMW AG are currently able to operate at full production capacity as a result of access to crucial high-tech car components that have been in limbo for months.

This easement has come earlier than expected.

“We’re still monitoring it week to week, but up to now basically worldwide, we had no issues running production,” said Joerg Burzer, Mercedes’s head of production and supply-chain management in the article.

This new chip availability partially comes from the weak economic outlook which also includes inflation. The demand for consumer electronics that also use these chips has lessened, meaning that the chips can be used to produce vehicles instead.

BMW is still closely monitoring the chip supply on a daily basis in anticipation of any significant changes.

“Currently, the situation is a little bit more stable,” said a BMW spokesman. 

However, not all automakers are experiencing the same phenomenon. Volvo Trucks, for example, has still endured limited chip availability that is expected to impact second-quarter production.