German media just broke a few days ago that Volkswagen Group is negotiating with suppliers on chip shortages, which may result in price increases. Immediately the latest news broke out that chip manufacturers such as TSMC, which have the right to speak in the supply of goods, "take advantage of the fire" and plan to increase chip prices by 15%.
Regarding the automotive chip crisis that has swept the world, the industry has previously mentioned an "excuse". For example, Kenxi said, “When car companies and suppliers realize that the demand for new cars exceeds expectations, it is too late and chip production capacity is difficult to coordinate.” That is because car companies underestimated the demand for the new car market in the post-epidemic era, especially in the Chinese market. The rebound has led to an imbalance in the rhythm of chip supply.
But this statement, Daimler does not buy it. On January 27, it said, “As early as mid-2020, we noticed the recovery of Mercedes-Benz’s new car demand, and immediately adjusted the mixing plan, and all orders have been placed on time.”
I have to say that Daimler’s statement is very rigid. , As car companies, they do not carry this pot, and kick the pressure on the supply chain. Volkswagen is negotiating possible compensation with suppliers such as Bosch and Continental.
In the Chinese market, at the end of last year, mainstream car companies such as North and South Volkswagen were bombed with insufficient chips.
In January, Volkswagen China CEO Feng Sihan admitted that since December 2020, the shortage of chips has caused Volkswagen to produce 50,000 cars less in China.
According to the information of Volkswagen China, the chip shortage mainly exists in the sensors of the ESP electronic stability control system, which together with the anti-lock braking system prevent the vehicle from sliding. In the Chinese market, mainstream models are currently equipped with ESP, so the overall demand is huge.
"As long as a chip is missing, you will see how fragile our auto industry is." According to Volkswagen, the chip shortage will continue throughout the first quarter.
The chip shortage is not limited to the Chinese market, but a global supply chain crisis. It has affected Volkswagen, Ford Motor Company, Subaru, Toyota Motor Corporation, Nissan Motor Company, Fiat Chrysler Automobiles and other automakers.
Audi CEO Dussman said a few days ago that the global semiconductor shortage will delay the production of some models and even cause more than 10,000 employees to take leave."We will do our best to control the total number of affected vehicles in the first quarter below 10,000." It is reported that Audi's two German factories will shorten their working hours by the end of January, and the production of A4 and A5 models will be affected.
Volkswagen said last month that due to chip supply bottlenecks, the global automotive manufacturing industry will experience major production interruptions in the first quarter of 2021. Mercedes-Benz is also cutting compact car production at its European plants. Other Japanese automakers such as Honda, Nissan, and Toyota, as well as Ford, General Motors, FCA, etc., have reduced production.
According to the China Automobile Association's survey of more than 60 automakers in China in December last year, the main reasons for the shortage of chip supply are summarized as follows: First, the chip industry's capacity growth is conservative, and the imbalance between supply and demand has always existed. In particular, suppliers have lowered their market expectations due to the epidemic, and underestimated the market rebound in the Chinese market in the second half of the year. Second, the demand for chips in the consumer electronics field is rapidly increasing, which has seized the production capacity of some automotive chips. And this trend may further intensify in 2021. Third, due to the continuous improvement of the degree of electrification, intelligence, and networking of automobiles, the global demand for automotive chips will exceed the growth rate of vehicle sales.
But according to foreign media reports, the reason is not only that.
"Targeted chip actions during the Trump administration have exacerbated the problem to some extent." Foreign media believe that this has caused Chinese mobile phone and other manufacturers to increase chip inventories and run out of production capacity. And when the production capacity is insufficient, chip suppliers will give priority to industries with high production growth rates, such as consumer electronics, to further exacerbate the structural shortage of chips in the automotive industry.
Therefore, the German "Auto Week" reported that Volkswagen is negotiating with chip suppliers, which may lead to price increases and change and adjust the original value distribution of the industry chain.
At the same time, Volkswagen hopes that Bosch and Continental can jointly bear the increased costs. A Bosch spokesperson said that it is currently working hard to maintain the supply chain. "We will directly discuss all further issues of semiconductor shortages with customers and suppliers." And these suppliers are mainly in Taiwan and Asian countries.
Looking at the political level, the attitude and actions of the German government, the German Minister of Economics Peter Altmaier urged Wang Meihua, the head of Taiwan’s Ministry of Economy, to convince Taiwan’s chip manufacturers toHelp alleviate the car chip problem.
The shortage of chips made the German auto industry see the uncontrolled, constrained, and fragile smart car industry chain, and urged them to find ways to strengthen the security of the local industry chain. However, due to the global industrial layout of chips, it is difficult to see results in the short term.
On the issue of whether to build chips, car companies in the past only considered two dimensions, whether it would help independent innovation and whether it would be more economical. It now appears that the production capacity is stuck in the hands of others, and it is entirely hoped that the division of labor in the society, especially the division of labor across the industrial chain across regions, may be too much
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