Mercedes says chip shortage issue won’t end in 2022


There’s an ongoing semiconductor chip shortage that’s been plaguing the car industry for about a year now and there’s no end in sight. According to Mercedes CEO Ola Kallënius, the issue won’t go away with 2021 and it won’t end in 2022 either.

Kallënius said that yes, things could [hopefully] improve by the end of 2021, but the structural problems that the shortage created will still negatively affect nearly ever car maker through the end of 2022, and things will only get back to normal, provided nothing else happens, by mid 2023.

Semiconductor chips are used in ECU management, driver assistance features, and even the infotainment system. Electric vehicles - and that’s all most car brands are building these days - need even more semiconductors, because of the battery management system.

The chip shortage is wreaking havoc across the industry. VW and Daimler are in trouble, Tesla is in even bigger trouble and even Ford isn’t doing well at all. In late August, production came to a halt at the Oakville assembly plant as well as the one in Kansas City. Two of the three shifts at the Dearborn Truck Plant were also halted, meaning Ford had to completely stop building F-150s, hands down the most important vehicle it currently sells, for a week.

The American manufacturer reported record numbers for the new Bronco in terms of sales, but they can’t keep up with demand, again because of the shortage. The only manufacturer that seems to be doing well is Hyundai, because they prioritized products that are in high demand, like the Tucson, ‘sacrificing’ everything else, and the tactic paid off. I guess that’s our lesson for the day: if you need a car, right now, buy a Hyundai.

Do you know anyone directly affected by this issue?

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Comments (5)

  • This is helping drive up the value of used cars so unusually the consumer is marginally better off.

      4 days ago
  • ME! I have this great salsa and no CHIPS!!!

      4 days ago
  • What's worse is that I think electric cars rely the most on chips, so if we are to push for electrification of cars we have to 1st think logically

      4 days ago