Carmakers get inventive as global chip crisis bites

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Whether buying computer chips directly from manufacturers, reconfiguring cars or producing them with parts missing, automakers are having to get creative to cope with the global shortage of semiconductors

The shortage, due to supply problems and a surge in demand for consumer electricals during the pandemic, has hit the auto industry hard, with millions of vehicles worldwide not being produced because important parts are missing.

In some cases that has led to a lack of transparency, said Ondrej Burkacky, a senior partner at McKinsey. Chip suppliers need to be treated differently given their strategic importance to the industry, said Stefan Bratzel from the Centre for Automotive Management. Annette Danielski, chief financial officer of Volkswagen's trucking unit Traton, said the company was trying to clear space on the motherboards of control systems.

Daimler relies on new designs for control units. Rather than using one specific chip, these are designed to work with an alternative that can be used in the event of delivery problems, the company's head of purchasing Schäfer said.The company reprogrammed software within three months so other less scarce chips could be used, enabling the US electric carmaker to weather the crisis better than many others.

 

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