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CHIP CHILL FOR CARS UNTIL 2023: Kovid is a stress test for the car industry

Aroj by Aroj
November 21, 2021
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CHIP CHILL FOR CARS UNTIL 2023: Kovid is a stress test for the car industry
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The shortage of chips that disrupts global car production could continue until 2022, and even in 2023, said one of the leading German manufacturers in the automotive industry.

CHIP CHILL FOR CARS UNTIL 2023: Kovid is a stress test for the car industry

Photo: Tanjug / AP

Kovid was a stress test for an industry that needed a thorough review of its supply chains, said Daimler president Ola Kalenius.

Deliveries of semiconductor chips have failed to meet demand in a wide range of industries. That includes the production of a car that enabled a quick recovery from the pandemic, reports Blic biznis.

“The shortcomings caused the closure in Malaysia and could significantly affect production and sales in the third quarter,” Kalenius, who is also the head of Mercedes-Benz, told.

This meant that the shortage could last until 2023, but Kalenius hopes that it will be at the level of severity that they have experienced in the last few months.

Kalenius said that Kovid was a stress test and a “traffic jam” for the automotive industry. It will take some time, he added, until everything starts.

“We will learn from this stress test and look even deeper into all levels of the distribution chain in order to make the system more robust,” Kalenius said.

Harald Kroeger, a member of the board of Bosch – one of the world’s largest suppliers of parts and systems, said that the main reason for the decline in supply in the car market is that demand has risen dramatically, which, according to him, is good news for the industry.

“Only a year ago, we were in the dark age of the corona virus, sales fell and no one expected such a rapid recovery of the car market. “Now we are definitely in a hurry to try to fulfill that request,” he said.

rs.sputniknews.com

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