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BMW Finally Buckles Under the Strain of Global Chip Shortage

Originally Posted by Bloomberg

BMW AG is giving way to the global shortage of semiconductors after months of managing to maintain output in the latest indication the auto industry’s supply-chain woes are only getting worse.

The automaker will pause Mini car production at its Oxford, England, factory for three days starting April 30, according to a spokeswoman. It’s also reducing shifts at its plant in Regensburg, Germany, this week.

BMW was one of the last remaining major automakers unscathed by a shortage of chips expected to cost the industry tens of billions of revenue this year. Tesla Inc. Chief Executive Officer Elon Musk this week called the issue a “huge problem.” NXP Semiconductors NV said it’s expecting supply to be tight all year and warned constraints for the auto industry could extend into 2022.

Carmakers from Volkswagen AG to Ford Motor Co. have been forced to idle factories as surging demand for phones, laptops and electronics during the pandemic overwhelmed suppliers. Although BMW sidestepped the turmoil for months, it acknowledged challenges to securing enough parts for all its plants.

The Oxford plant produced around 222,340 Mini vehicles in 2019, equivalent to around 870 vehicles per working day. Around 80% of the vehicles produced in Britain are exported.

The Regensburg factory makes the X1 and X2 as well as the 1 Series and 2-Series Gran Tourer. It produced around 200,000 vehicles last year or roughly 790 cars per working day.

Other BMW plants continue to operate as normal, according to the company. The Financial Times reported the Mini production outage earlier Wednesday.

Updated Information (5/4/2021)

Originally Posted by shameson

These changes started with March production vehicles. To give a few changes:

• H/K is being limited (or removed fully) as an option on any vehicles where it is not standard.
• Ventilated seats, multi contour seats and possibly even M Sport package are being restricted on X5/6/7 6-cyl models
• Laser lights possibly restricted for 4 series models (M4 included).
• Lumbar is being added to the drivers seat only on 3/4 series.
• No ventilated seats on X3/X4 (still available on M models).

They already had removed ZDY package on 3/4/X3/X4 30i/30e models, so no active cruise for those. All these are already being reflected on the BYO on BMWUSA site.

Updated Information (7/1/2021)

Originally Posted by Reuters

FRANKFURT, July 2 - BMW (BMWG.DE) warned a chip shortage that has plagued the car industry may lead to further lost production, saying on Friday it showed no signs of abating and supply would remain tight in the second half of the year.

Production was being halted at various sites, either on a daily basis or individual shifts, Milan Nedeljkovic, BMW board member in charge of production said, adding that lost output was around 30,000 "units" so far this year.

He added further shortfalls were possible.

"Semiconductor supply is really critical," Nedeljkovic told reporters at an event to mark the start of serial production of BMW's iX electric sport utility vehicle.

"The outlook for the second half of the year, too, remains critical. The ... initial assumption, that it will be brought under control fairly soon and be covered more or less in the first half of the year, is difficult."

Nedeljkovic made the comments as BMW said it plans to significantly ramp up production of electric vehicles at its Dingolfing plant, which accounted for more than a tenth of its total production last year, helped by its iX SUV.

The luxury carmaker said it made more than 18,000 electric cars at the site last year, accounting for about 8% of production, adding that share will be doubled to 16% in 2021.

BMW also said that half of the vehicles produced at Dingolfing would be electrified by the middle of the decade.