The global shortage of semiconductors or chips, which began in the spring of this year, continues to refer to the car manufacturing industry, as a result of which car dealers are unable to predict car delivery times, informs Andris Kulbergs, head of the Latvian Auto Association.
Chips are used in new vehicles, including infotainment systems, power steering, brakes and other vehicle systems.
“Uncertainty about the pace and supply of new cars, which has been going on since the spring, continues. In Latvia, too, buyers of new cars cannot be satisfied with information about the terms of car deliveries, which, of course, has a negative effect on purchase decisions, “says A. Kulbergs.
The lack of semiconductor chips is expected to cost the global automotive industry $ 110 billion in lost revenue in 2021, the consulting firm said. AlixPartners. These estimates cover the entire supply chain, from dealers and car manufacturers to larger and smaller suppliers.
In February 2021, the estimated loss was estimated at $ 60 billion, primarily due to the impact of Covid-19 on the growing sales of electrical equipment, including cars. However, supplies are currently affected by a number of other adverse factors, including a fire at a semiconductor supplier plant near Tokyo and weather problems in the automotive supply chain.
A. Kulbergs points out the chain reaction caused by the problem – many car tenderers are not aware of the supply problems in the global market and set short unachievable deadlines or unavailable options. He adds that the global decline caused by Covid-19 and the current simultaneous increase in demand have affected not only the lack of semiconductors, but also the lack of many production components, resulting in many options and modifications not being available. Thus, there is a significant demand for little-used transport, as a result prices have risen significantly and there is a lack of quality supply not only in Latvia, but throughout Europe.
Deliveries of many products have increased from six months to as much as 9-12 months.
“Buyers of new cars at the moment can only be advised to be rational, to communicate with the dealer of the chosen car and to be patient. Secondly, to rationally consider the recommendations of car dealers about the importance of assembly, as the need to use a semiconductor can be avoided in the case of certain manufacturers and models. In turn, I urge all those in a hurry to remain calm and patient until the semiconductor crisis in the world is resolved and manufacturers will be able to sell car orders at previous speeds, “adds A. Kulbergs.
It has been previously reported that the global demand for semiconductors or chips has far exceeded supply as a result of the Covid-19 pandemic, leading to a deficit that is having a negative impact on the industry. Chips or semiconductors ensure the operation of not only cars, smartphones and computers, but also other electrical and household appliances.
–
