2021-05-12 04:35:39 GMT2021-05-12 12:35:39(Beijing Time) Xinhua English
FRANKFURT, May 12 (Xinhua) A global shortage of semiconductor chips is taking its toll on the European manufacturing industry, hindering the sector s recovery and pushing Europe to rethink its supply chain strategy.
Automakers are among the worst hit, as chips are now vital for everything from a car s battery system to in-car computer features. Several car makers in Europe have recently curtailed or halted production after failing to secure crucial components.
German automaker Daimler in late April sent employees on short-time work and temporarily halted production at two plants in Bremen and Rastatt due to chip delivery bottlenecks. Audi later also partially stopped production at its Neckarsulm site.
Synopsis
The shortfall of critically needed semiconductors has forced the entire auto industry to cut output, leaving thin inventories at dealerships just as consumers emerge from Covid-19 lockdowns.
iStock
Ford expects a $2.5 billion hit to earnings due to scarce chip supplies.
The global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis.
In a dizzying 12-hour stretch, Honda Motor Co. said it will halt production at three plants in Japan; BMW AG cut shifts at factories in Germany and England; and Ford Motor Co. reduced its full-year earnings forecast due to the scarcity of chips it sees extending into next year. Caterpillar Inc. later flagged it may be unable to meet demand for machinery used by the construction and mining industries.
La crisis de los chips llega a BMW, Honda, Ford y Apple sputniknews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sputniknews.com Daily Mail and Mail on Sunday newspapers.
Global chip shortage hits Apple, BMW, Ford as crisis worsens
Peter Vercoe, Bloomberg News VIDEO SIGN OUT
The global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis.
In a dizzying stretch of 12 hours, Honda Motor Co. said it will halt production at three plants in Japan for around five to six days next month; BMW AG flagged it will pause Mini car production at its Oxford, England, factory for three days; and Ford Motor Co. reduced its full-year earnings forecast due to the debilitating chip shortage, which it sees extending into next year.