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Chip shortages force German carmakers to throttle production even as demand recovers

July 21, 2021

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The global semiconductor shortage is disrupting production in the German car industry just as demand rebounds strongly from the pandemic-induced downturn.

Automakers Daimler and BMW said this week that the lack of chips had forced assembly lines to slow down or stop, cutting output by tens of thousands vehicles and leading to longer wait times for customers.

This week, BMW temporarily stopped production or cut back the number of shifts at three factories in Germany and one in Britain, as well as at factories owned by suppliers in the Netherlands and Austria that assemble vehicles under contract, the company said.

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