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- Chip Shortage Issues Reaching A Critical Point: BMW To Reduce Production?
The issue of the world chip shortage seems to be getting even more critical. This was also acknowledged by BMW in a shared statement. This chip shortage crisis occurred as a result of excessive demand exceeding the available supply.
“Semiconductor supply is very critical. For the second half, this shortage problem will remain critical,” said BMW Production Unit Head, Milan Nedeljkovic.
"The initial assumption that it will be completed in the first half of this year seems to have failed," he said when speaking with the media at the launch of the BMW iX electric sport utility vehicle.
BMW has lost about 30,000 units due to this issue and it does not stop there as the figure is expected to increase in the second half of this year.
As we all know, this issue not only affects BMW, but also other automotive companies around the world such as Nissan, Toyota, Volkswagen and many more.
In a recent report, Ford predicted that it would face a loss of USD2.5 billion involving about 1.1 million units of cars from eight Ford production plants.
According to consulting firm AlixPartners, this ongoing chip shortage issue is estimated to result in losses reaching up to USD 110 billion just in 2021.
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