chip shortage prices eu automobile industry €one hundred billion

the dearth of semiconductors and chips, essential in the manufacturing of new cars, fee the eu automobile enterprise nearly €a hundred billion in 2021-2022, estimates insurer allianz in a have a look at published on 13 september.

due to this scarcity of chips, a consequence of lasting supply chain disruptions following the covid-19 pandemic, almost 18 million fewer cars have been produced globally, with the european car industry being hit especially tough by the shortages.

between january and august this yr, the sale of latest cars dropped via eleven.9% in the european union, compared to the same period ultimate yr. these shortages have best been exacerbated this 12 months by means of economic shockwaves from russia’s invasion of ukraine and china’s “0 covid” lockdown regulations.

in keeping with allianz, the automotive enterprise is in part responsible for the problems it’s far presently experiencing.

at some stage in the pandemic, the industry vastly reduced its spending, in addition to its shares of valuable semiconductors. chip manufacturers then appeared somewhere else, promoting the chips to customers in the computing sector. when call for for chips for vehicles picked up once more, the industry changed into forced to make do with what little chips it had left.

closing year, primary car manufacturers in belgium had been forced a couple of times to droop manufacturing due to a loss of chips. manufacturing traces at ghent’s volvo manufacturing facility and the brussels audi manufacturing unit have been each regularly disrupted for the duration of the pandemic.

on the basis of its findings, allianz called on europe to cognizance on chip manufacturing for the automotive region.

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