Monday June 21, 2021

BMW to slow down production due to chip shortage

Published : 09 Jun 2021, 20:31

  DF News Desk

File Photo Xinhua.

BMW will slow down car production to single-shift operation at its largest European plant in Dingolfing in Germany due to semiconductor shortages, the German carmaker confirmed to Xinhua on Wednesday.

"We are monitoring the issue intensively and are in constant exchange with our suppliers on this," a BMW spokesperson said. "Our goal is to continue to ensure the supply of our plants."

In late April, BMW already reduced certain shifts at its Oxford and Regensburg plants and at the contract manufacturer VDL Nedcar. German car manufacturers Daimler and Volkswagen also recorded temporary reduction in production due to chip shortages.

Reflecting problems with the global supply of semiconductors, the indicator of production expectations in the German automotive sector dropped from 42 to 10 points in May, the ifo Institute said on Tuesday.

"The automotive industry and its suppliers are significantly scaling back their expectations, but continue to anticipate production increases," said ifo Institute expert Klaus Wohlrabe in a statement.