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BMW Facing Grim Year Due To Processor Shortages

BMW is facing a grim year, with the German luxury car manufacturer admitting that they not been able to produce 30,000 vehicles due to processor shortages.

As brands such as BMW move to new in car technology for entertainment navigation and the overall management of a motor vehicle, they have had to join a long queue including PC, headphone, audio and TV manufacturers who are now need processors to deliver a product to market.

BMW admitted overnight that nearly all its German plants were affected by an ongoing shortage of semiconductors that are currently preventing the luxury carmaker from completing around 10,000 cars.

The Munich-based company earlier this month said that the bottleneck, which has affected carmakers around the world, has already led to 30,000 vehicles in lost production so far this year.

It’s not just luxury brands that are facing chronic shortages of processors, Ford is currently in negotiations with dealerships in an effort deliver cars that are unable to be driven.

According to automotive media Ford dealers are being asked to take delivery of unfinished vehicles from Ford, as the company awaits more stock of semiconductor chips from suppliers.

It’s understood Ford is struggling with overcrowded car storage facilities and has offered dealerships attractive financial incentives to finish building the cars by installing the computer chips when they become available.

For more than six months, the automotive industry has faced a global semiconductor chip shortage – a vital component in modern cars run by computers – following supply disruptions caused by the COVID-19 pandemic.

Despite chip makers scrambling to meet demand, car manufacturers have been forced to curb production or simply remove features from models that require chips.

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