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      04-28-2021, 10:20 PM   #1
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BMW AG Plants Starting to be Affected by Global Chip Shortage

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BMW Finally Buckles Under the Strain of Global Chip Shortage
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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)
Quote:
Originally Posted by shameson View Post
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)
Quote:
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.
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      04-28-2021, 11:48 PM   #2
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People still buy Minis?
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      04-29-2021, 04:22 AM   #3
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Quote:
Originally Posted by The J-Man View Post
People still buy Minis?
In Europe - yes.
Everything is tiny in Europe. Streets, cars, trucks, countries’ GDP, etc.
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      04-29-2021, 07:03 AM   #4
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I now understand why my M135i has been delayed to mid June at least… (initial delivery was scheduled for beginning of May - car ordered on the 22 of March).
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      04-29-2021, 07:25 AM   #5
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Quote:
Originally Posted by fe03h20 View Post
In Europe - yes.
Everything is tiny in Europe. Streets, cars, trucks, countries’ GDP, etc.
Ha ha, yes that and fuel prices are part of the reason why US cars are somewhat unpopular over here (although I'm sure even the most die hard USDM car fan will admit a lot of them are bit sub-par), apart from a tiny minority (plus here in the UK we have the steering wheel on the other side!)
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      04-29-2021, 07:53 AM   #6
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This was bound to happen the shortage is a bit annoying for everything that uses some for of semi conductor as we speak. Great for the subcontractors who probably can drive up prices on stuff now making it more expensive due to demand and supply issue.

Just as with the ridiculous prices on GPUs at the moment, and lets not talk about scalper prices.
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      04-29-2021, 07:54 AM   #7
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Quote:
Originally Posted by fe03h20 View Post
In Europe - yes.
Everything is tiny in Europe. Streets, cars, trucks, countries’ GDP, etc.
Yeah, put a gallon at 6-8$ and you would see cars shrink pretty fast here as well
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      04-29-2021, 08:26 AM   #8
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I thought BMW was already seeing effects of this chip shortage and that's why the Driver Assist Pro on the X3/X4 had already been pulled earlier this year.

This article may be a bit misleading, in that it ignore existing cuts BMW had already made to feature availability in certain vehicles.
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      04-29-2021, 08:30 AM   #9
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Quote:
Originally Posted by briguy80 View Post
I thought BMW was already seeing effects of this chip shortage and that's why the Driver Assist Pro on the X3/X4 had already been pulled earlier this year.

This article may be a bit misleading, in that it ignore existing cuts BMW had already made to feature availability in certain vehicles.
You're right but I think managing options/features and bundling them with other packages that may deter buyers from getting said option is different then actually halting production (depending on market). Both are a result of a supply shortage but the latter is more significant and indication that the shortage has finally caught up to BMW which affects their global market and not a specific region.
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      04-29-2021, 08:49 AM   #10
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lets hope this is resolved sooner rather then later.

I believe BMW stockpiled a huge amount of chips anticipating this sort of thing, I thought I read that somewhere. Either way like I said above lets hope it gets resolved soon
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      04-29-2021, 11:34 AM   #11
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Automotive News article:

https://www.autonews.com/manufacturi...-chip-shortage

On a side note, Apple iPad and Mac sales were up 79% and 70.1%, respectively, for Q2 2021. That's the global chip shortage.
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      04-29-2021, 12:10 PM   #12
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Seems like they're focused on idling lower margin models from the compact class. Focus resources to the higher margin larger class models is smart from a financial stand point.
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      04-29-2021, 12:46 PM   #13
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Have names been named, for the companies that make "chips" that are presently directly impacting auto factories?

Which company(ies), and which of their factories, isn't(aren't) making "chips" in the needed quantity or quality?
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      04-29-2021, 02:07 PM   #14
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OK, so back to carbs and manual choke models we go.
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      04-29-2021, 02:17 PM   #15
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Quote:
Originally Posted by The J-Man View Post
People still buy Minis?
My better half is on her 3rd one...
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      04-29-2021, 03:51 PM   #16
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Quote:
Originally Posted by briguy80 View Post
I thought BMW was already seeing effects of this chip shortage and that's why the Driver Assist Pro on the X3/X4 had already been pulled earlier this year.

This article may be a bit misleading, in that it ignore existing cuts BMW had already made to feature availability in certain vehicles.
They've cut the DAP package on all 30i/30e models for 3/4/X3/X4. Should still be available on any of their M40i trims. Pretty much have to pay to play right now if someone wants active cruise.
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      04-29-2021, 04:47 PM   #17
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Start back production of e30 and e36!
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      04-30-2021, 03:33 AM   #18
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I ordered a 21 X3 M40i and they said they can't do the lumbar adjustment and bolster adjustment for the passenger seat. Those are supposed to be standard features on this model. Gave me a small credit in return, but I obviously would've much rather had the features instead.

I'm not sure if any other features like this aren't available on other models. Since it's an M40i at least I had no issues getting driver assistance pack.
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      04-30-2021, 05:45 AM   #19
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Quote:
Originally Posted by fe03h20 View Post
Switching from cars to guns?
Dangerous subject to forum’s majority.

Besides, “turkish minority” does not sleep. :-)
I am America only thing big here is the women and the amount of adults that believe in fairies. This forum is the reason Americans buy European cars and date European women. Nobody wants a chevy or a 300lb girlfriend.
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      04-30-2021, 06:01 AM   #20
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Quote:
Originally Posted by DizFunkNull View Post
I am America only thing big here is the women and the amount of adults that believe in fairies. This forum is the reason Americans buy European cars and date European women. Nobody wants a chevy or a 300lb girlfriend.
Oh…Europe’s innovation goes beyond belief. I get that.
And your women are real beauties. Especially 50 kg northerners.

Anyhow, try moving out “X” production back to your shores.
Good luck with that and happy selling!
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      04-30-2021, 07:05 AM   #21
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BMW bulletin says Driver Assistance Plus will be unavailable on the X3 30i for "the foreseeable future".
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      04-30-2021, 05:42 PM   #22
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Quote:
Originally Posted by chassis View Post
Have names been named, for the companies that make "chips" that are presently directly impacting auto factories?

Which company(ies), and which of their factories, isn't(aren't) making "chips" in the needed quantity or quality?
There are basically three big players in the semiconductor world: TSMC, Intel and Samsung. TSMC is producing ALL of AMDs processors and GPUs (which includes PS5 and Xbox Series X) as well as Nvidia GPU and a big part of Apple Silicon. Just to give you an idea about which scale of production we are talking about. Intel is only producing for them selves, while Samsung produces their own chips, the rest of Apple silicon as well as most of the CPUs you will find in phones (Is there anything Samsung does not do? They even built the Burj Khalifa!). All the things I just numbered are in very big demand due to Covid obviously.

With foundries of that scale everything needs time, a lot of time. We're talking about 5-10 years until you notice the effects of decisions made today. Unfortunately the biggest of those foundries TSMC is running on 110% since they introduced their 7nm manufacturing node. With Intel only producing for themselves there is basically only Samsung that can supply chips in a sufficient manner. Ramping up the capacities is not possible in reasonable time frames (they are building new facilities, but you can probably imagine it takes years until they are ready to go live).

Apart from the automotive industry, you can directly see the effects of that shortage in the supply for graphics cards. They are currently going for double the MSRP (although miners buying up all the cards worsen the situation additionally).
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