BMW warns of more lost production as chip shortage continue

BMW has warned that chip shortage may result in further lost production. There are no signs of abating and supply would remain tight in the second half of the year, the automaker said on Friday.

Production was being temporarily stopped at various plants, either on a daily basis or individual shifts, Milan Nedeljkovic, BMW board member in charge of production said.

He added that lost output was around 30,000 units this year.

“Semiconductor supply is really critical,” Nedeljkovic informed reporters at an event to mark the start of serial production of BMW’s iX electric sport utility vehicle.

“The outlook for the second half of the year, too, continues to be critical. 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.”

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.