ChinaAUTOSHOW Chip shortage casts shadow on China s auto industry recovery
Yilei SunNorihiko Shirouzu
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A Volkswagen ID.6 X is displayed ahead of the Shanghai Auto Show, in Shanghai, China April 18, 2021. REUTERS/Aly Song
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Auto industry executives are rattled by a global shortage of semiconductors which is hitting production in China, after hoping the world s biggest car market could spearhead global recovery in the sector.
Automakers around the world have had to adjust assembly lines due to the shortages, caused by manufacturing delays that some semiconductor makers blame on a faster-than expected recovery from the coronavirus pandemic.
Volkswagen AG (VOWG p.DE), China s biggest foreign automaker which wants to sell over four million vehicles in the country, said the impact of the shortage remains unabated in the second quarter this year.
When chips are down, some carmakers invest By Li Fusheng | China Daily | Updated: 2021-04-19 09:25 Share SAIC employees inspect cars on an assembly line in Shanghai in February. [Photo/Xinhua]
Money is not everything, and carmakers are learning this the hard way: no one had expected the lack of chips would hurt them so much and for so long.
The auto industry began to feel the pinch of the chip crunch in late 2020. Industry insiders think the shortage may continue well into the second half of this year.
Consulting firm AlixPartners estimated it will cost the auto industry a whopping $60.6 billion in revenue this year.
By Norihiko Shirouzu and Yilei Sun SHANGHAI (Reuters) - Auto industry executives are rattled by a global shortage of semiconductors which is hitting production in China, after hoping the world s biggest car market could spearhead global recovery in the sector. Automakers around the world have had to adjust assembly lines due to the shortages, caused by manufacturing delays that some semiconductor makers blame on a faster-than expected recovery from the coronavirus pandemic. Volkswagen AG, China s biggest foreign automaker which wants to sell over four million vehicles in the country, said the impact of the shortage remains unabated in the second quarter this year.
By Norihiko Shirouzu and Yilei Sun SHANGHAI (Reuters) -A global shortage of semiconductors is hitting autos production in China, jeopardising hopes the world s biggest car market might spearhead a recovery in the sector, industry executives warn.
Automakers around the world have had to adjust assembly lines due to the shortages, caused by manufacturing delays that some semiconductor makers blame on a faster-than expected recovery from the coronavirus pandemic. Volkswagen AG, China s biggest foreign automaker which hopes to sell over four million vehicles in the country, said the situation had not improved in the second quarter. The German group s China chief, Stephan Woellenstein, told reporters on Sunday it was hard to gauge how much production Volkswagen might lose week to week, or even month to month because of the chip shortage.
From:ChinaDaily | 2021-04-19 10:14
German automotive supplier Brose is expecting its China business to account for a quarter of its global sales revenue by 2025, up from around 20 percent last year, as it looks to tap into the growth potential of the world s largest vehicle market.
Last year, its sales in China stood at 1.1 billion euros as the country was the first to curb the COVID-19 pandemic. The company s global sales revenue was 5.1 billion euros in 2020.
Brose is the world s fourth-largest family-owned automotive supplier. Every second new vehicle across the world is equipped with at least one product from the company, from vehicle doors and seats to electric motors, drives and electronics.