Published on May 3rd, 2021 | by Daniel Sherman Fernandez0
BMW MINI Production Hit By Chip Shortage
Chip shortage forces a three day closure at the Mini Oxford plant.
The computer chip shortage worldwide has opened the eyes of many car manufacturers on the need to hedge their purchase of chips as they are having more technology installed inside of their new cars.
The past six months or so we have seen dozens of car manufacturers having to halt production at the various factories due to a global shortage of this very important component.
Even a producer of simple vehicles, Proton have equipped their new models with next generation cabin entertainment and this requires advanced computer chips.
Many car manufacturers like Audi and Ford who were affected by this shortage have been trying to cope, however BMW Group has been quietly managing to keep their production running without a halt in production, we can only assume, their chip supply planning has been very good, until now.
News just in late last week that the BMW Group 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.
PRESS RELEASE: The German car manufacturer who also owns Mini and Rolls Royce will pause production of Mini cars at its Oxford, England, factory for three days starting April 30, according to a spokeswoman. It’s also reducing shifts at its BMW plant in Regensburg, Germany, from 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 CEO Elon Musk this week called the issue a “huge problem.” NXP Semiconductors said it’s expecting supply to be tight all year and warned constraints for the auto industry could extend into 2022.
Automakers from Volkswagen to Ford have been forced to idle factories as surging demand for phones, laptops and electronics during the pandemic overwhelmed suppliers.
Although BMW side-stepped 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 percent of the vehicles produced in Britain are exported.
The Regensburg factory builds the X1 and X2 as well as the 1 Series and 2-Series Gran Tourer. It produced around 200,000 vehicles last year or about 790 cars per working day.
Other BMW plants continue to operate as normal, according to the company.