- Tram Ho
Luxury cars are short of stock because of chips
On February 22, the Porsche CEO said that the daily operations of the German luxury car factory could be affected in the coming months due to the “very severe” global shortage of semiconductors.
” The semiconductor topic is a very hot issue as the entire industry is hit by huge demand for consumer electronics and a faster-than-expected return in the automotive sector ,” said Oliver Blume, director Porsche executives, said. ” We see influence every day so we watch closely to see what to do next. We both have to tackle short-term problems and look for solutions for the long-term .”
The Porsche CEO’s comment comes after global car sales spiked at the end of last year, coinciding with a time when there was a shortage of chip materials. The supply shortfall put the car industry’s assembly lines to a standstill and stalled production of hundreds of thousands of cars around the globe because of their tight reliance on offspring. chip.
Demand for these products, or more generally for semiconductors, skyrocketed during the Covid-19 epidemic as users poured a lot of money into consoles, laptops and TVs at a stage when people were restricted from moving. . Right now, many of these products, including laptops, tablets, or gaming systems like the Xbox Series X and PlayStation 5, take longer to ship. .
The shortage of chips has particularly affected the automotive sector due to the “timing” of the supply chain that the car industry has relied on for decades to preserve capital, analysts say. Asked if Porsche will reconsider its supply chain model, Blume said: ” Of course, that’s very important for the future of the supply chain “.
Request a supply chain overhaul
Not only Porsche, another German luxury car manufacturer MercheMercedes-Benz is also having to recalculate when stockpiling their chips to prevent the paralysis of the production line. Similar actions could spur an overhaul to the supply chain, which doesn’t have a lot of prep, just stock just before it is needed.
For decades, automakers relied on daily deliveries to preserve cash. The system also allows for last-minute battles between component manufacturers. However, the chip shortage indicates that this model needs to be improved to meet new demand.
” We have to think about increasing inventory. However, increasing inventory means spending money. So that’s probably the last option, ” said the Porsche CEO.
Not only luxury car manufacturers, in the past few weeks, carmakers including Volkswagen, General Motors, Nissan and Honda have also shut down factories or slowed down production due to parts suppliers. struggled to secure supplies. Ford estimates it could lose up to a fifth of its first quarter production by cutting production of its best-selling F-150 pickup truck.
Research from IHS Markit shows there will be about 670,000 cars reduced in the first quarter of the year due to general shortages. The industry is now preparing for several more weeks of disruptions as suppliers have to race to meet manufacturers’ needs.
IHS also found that the lack of hibiscus mainly affects the microcontroller supply. Small chips are used to power everything in modern cars, from parking sensors to airbags and entertainment systems. Of concern, about 70% of that is produced by a single company: Taiwan’s TSMC.
Last month, German Economy Minister Peter Altmaier wrote a letter to the Taiwan side calling for intervention on behalf of his carmakers. Other countries including Japan and the US also came out to call for relief of the shortage. The leaders of the companies also sat together to discuss to solve this difficult problem.
While the short-term problems remain unresolved, many have thought of a longer-term solution, which changes the character of the supply chain. Accordingly, the storage of chips in the warehouse will become an issue that all manufacturers, from luxury cars to popular cars, must do to prevent the crisis from recurring again.
However, since semiconductors are “have a shelf” products, automakers need to carefully calculate the amount of storage. Others consider doubling the number of suppliers. However, not choosing a good supplier will be catastrophic, even if a brand has three suppliers.
Source : Genk