Small tiles cast a large shadow over the Munich Motor Show

MUNICH, Sept. 6 (Reuters) – As carmakers gathered in Munich on Monday to launch vehicles almost exclusively with zero or low emissions, an ongoing shortage of semiconductors cast a long shadow over the first major showroom. ‘cars since the pandemic began.

Forced to close plants last year, vehicle manufacturers are now facing growing competition from the consumer electronics industry for chip delivery. This problem has been exacerbated by a series of supply chain disruptions during the pandemic.

Cars have become increasingly dependent on chips, from computer engine management for better fuel economy to driver assistance functions such as emergency braking.

Speaking during the launch of a pair of electric vehicles (electric vehicles) on Sunday evening, Ola Källenius, CEO of the German premium manufacturer Daimler AG (DAIGn.DE), said that although the company expects its own supply will improve in the fourth quarter, Growing demand for chips means the industry could struggle to get enough in 2023, though shortages should be less severe by then.

“Several chip suppliers have referred to structural problems with demand,” Källenius said. “This could influence 2022 and (the situation) may be more relaxed in 2023.”

Joerg Burzer, head of supply chain for Daimler’s vehicle manufacturing unit, Mercedes-Benz, said he expected the situation to stabilize in the fourth quarter. “Relaxation will come later.”

The IAA Mobility show in Munich is the world’s first major motor industry event since the global coronavirus pandemic.

Despite the continuing shortage, Daimler board member Britta Seeger said the vehicle manufacturer does not believe its long-term electric vehicle targets will be affected.

Automakers from the US group General Motors (GM.N) to India Mahindra (MAHM.NS) and Japan’s Toyota (7203.T) have reduced production and sales forecasts due to supply scarce chips, worsened by the resurgence of COVID-19 in Asia key semiconductor production centers.

Last week, Chinese manufacturer EV Nio Inc. (NIO.N) cut delivery forecasts for the third quarter due to uncertain and volatile semiconductor supplies.

Renault CEO (RENA.PA) Luca De Meo said on Monday that the shortage of chips had been tougher than expected during the current third quarter, but said the situation should improve in the fourth quarter.

Leading car supplier Bosch (ROBG.UL) said it expects shortages to be reduced somewhat in the coming months, but supplies will remain limited next year.

BMW CEO (BMWG.DE) Oliver Zipse said the premium carmaker expects supply chains to remain tight until 2022.

“I expect the overall tightness of supply chains to continue in the next 6 to 12 months,” he said.

Additional reports by Ilona Wissenbach, Christina Amann, Gilles Guillaume and Victoria Waldersee; edited by Jason Neely

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