BMW emphasized its concern regarding the ongoing global chip shortage recently, explaining that the excessively low supply could result in further lost production within the car industry. The German automaker also mentioned that there is little likelihood that supply will increase in the later stages of 2021.
As a result of this mass shortage, BMW had to halt supply at a variety of its production facilities. According to BMW board member Milan Nedeljkovic, the vehicle manufacturer lost about 30,000 units of output due to the ongoing worldwide shortage. In addition, Nedeljkovic expressed concern that shortfalls could in fact increase as the year progresses.
Nedeljkovic expressly told reporters that “Semiconductor supply is really critical” while at an event celebrating the beginning of the production of BMW’s iX electric sport utility vehicle. Nedeljkovich’s concerns of short supply aside, and BMW is significantly ramping up production on the electric vehicle front, with its Dingolfing plant expected to produce a large portion of EVs. The Dingolfing plant accounted for a tenth of BMW’s total production last year, with the iX SUV leading the charge.
Furthermore, BMW announced that approximately half of the vehicles manufactured at the Dingolfing plant are expected to be electric by the middle of the decade.
