BMW Has No Good News About the Chip Shortage, the Nightmare Will Continue
17 March 2022 - autoevolution
Depending on who you ask, the chip shortage could come to an end at some point this year or in 2023 after a slow recovery in the last months of 2022.
But as far as BMW is concerned, the lack of chips combined with the supply chain disruptions caused by the war in Ukraine have caused new struggles that are impossible to deal with in the short term.
In other words, the German carmaker has reduced its original sales estimate for 2022, explaining it now expects this year’s figures to match the ones in 2021.
Last year, BMW sold a total of 2.52 million vehicles.
The company doesn’t expect the chip shortage to come to an end this year, so in theory, the semiconductor supply is very likely to remain incredibly constrained until 2023.
But BMW is betting big on EVs, as it wants to sell more than 200,000 zero-emission vehicles in 2022. The company has a target of 2 million EVs by 2025.
While some analysts are optimistic the chip inventory would ease off in the second half of 2022, it becomes more obvious this isn’t going to happen.
Just last week, Ford announced a new set of measures supposed to help the company deal with the chip shortage, including the removal of certain systems from Explorer SUVs. The whole purpose was to reduce the number of chips used per each model, so at the end of the day, the company would have more units to build additional vehicles.
BMW, too, was affected by the chip shortage in most markets out there. In the United States, the company sold some cars without touch-capable screens for the very same reason, therefore following in the footsteps of other large manufacturers who removed non-critical systems from their vehicles.
As for the war in Ukraine, BMW says it’s still working with its local suppliers, but the company has already reached out to other suppliers based in various locations to minimize any potential disruption in its supply chain.