As the semiconductor shortage rages on, hopes for a quick solution to the supply issues are fading. BMW is now saying that it foresees only a continued shortage through the second half of the year.
“Semiconductor supply is really critical,” Milan Nedeljkovic, BMW’s head of production told journalists at an event for the BMW iX, Reuters reports. “The outlook for the second half of the year, too, remains critical. The […] initial assumption, that it will be brought under control fairly soon and be covered more or less in the first half of the year, is difficult.”
Many automakers have seen a significant increase in sales through the first two quarters of 2021, as pent-up demand explodes on the market following the loosening of COVID-19 restrictions. But, at the same time, supply has been shrinking as dealers are running out of new vehicles to replace the ones they’ve sold.
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Dealers across America have reported that customers are coming in and buying new vehicles without negotiating, and even high-demand lightly-used cars are selling for more than they did when they were new.
Nedeljkovic told journalists that BMW’s lost output amounted to around 30,000 units so far this year and said that shortfalls are possible for the second half of the year as well.
The problem is compounded as automakers race to produce increasingly technologically advanced cars that require more and more microchips. To counter this problem, some have even taken to selling vehicles without certain features just to get them into dealerships.
Without a steady supply of microchips, and with backlogs building, the decisions may soon become even more difficult for automakers.
