With many of us stocking on on gadgets and games during COVID lockdowns, BMW is now facing a shortage of semiconductor chips
The COVID pandemic has added another unlikely victim to its list as BMW faces a shortage of semiconductor chips.
Experts think the shortage is due to the increased supply for video games and gadgets during global coronavirus lockdowns.
“We cannot assume that we will emerge from the second quarter unscathed,” Chief Executive Officer Oliver Zipse said.
BMW “aren’t worried”
Despite the troubled time, BMW says they “aren’t worried” about the chip shortage.
The German carmaker remains on course to meet its profit targets for 2021 despite emerging challenges for the automotive industry. The past year has also seen the cost of raw materials rising.
Zipse also said he did not expect the shortage to have a major impact on production. BMW will respond by prioritising the production of cars with higher profit margins.
BMW forced to halt production
The shortages in chips have resulted in many assembly plants being forced to halt production.
This has driven down the supply of chips – as a result seeing increased prices for both new and used vehicles.
