The lack of semiconductors prolongs the problem of delivering new cars

The automotive industry did not use semiconductors to a large extent in previous years, but the move towards electric propulsion, the development of driver assistance systems and the increase in sustainable mobility have greatly increased the need for semiconductors.

Because tiny microchips are essential for many important automotive systems, they are the key to the automotive industry’s growth. The huge increase in demand for computers, mobile phones and other consumer electronics during the first phase of the pandemic, did not leave room for manufacturers to supply significant quantities to ensure smooth production.

With automotive warehouses empty and stocks depleted, the lack of microchips now has a direct impact on vehicle production. The European car industry is trying to recover from the impact of COVID-19, but the problems remain. Car production fell by 23.3% during the last year, ie it decreased by 5 million units compared to 2019, while the production of commercial vehicles in the EU decreased by 21% in 2020.

Although consumer demand for new vehicles has risen again in recent months, EU manufacturers are unable to meet it. Especially now that they are facing partial or complete production shutdowns in their factories due to the continuing shortage of semiconductors. This is the most important reason that new cars have a delay of many months, not only in Greece but throughout Europe.

But this slowdown in the renewal of the EU vehicle fleet is jeopardizing Europe’s climate ambitions. Production volumes in Europe are expected to remain low in the coming months, hoping for a recovery from next year. This means prolonging the use of old cars, and therefore the increased emissions.

Although mass layoffs have been avoided so far, many workers have already been affected by the decline in car production. Today, many factories have programs to reduce working hours, vacation days, short-term work, leave programs or temporary unemployment.

The big question is how to fix the situation. “Improving the reliability of the different levels of the microchip supply chain must be a top priority at European level, given the complexity of the automotive value chain. To prevent this from happening again in the future, Europe must draw up a strategic plan for “It is important, however, to ensure that this new capacity provides the right types of chips used in motor vehicles,” said Eric-Mark Huitema, Director General of the European Automobile Manufacturers Association (ACEA). .

SOURCE: AMPE