The Chip Shortage Is Here to Stay, Bosch Warns in Gloomy 2022 Forecast

As if it wasn’t already clear, the chip shortage isn’t going anywhere, and despite all the recent investments in production capacity, automakers out there are still struggling to find the necessary components for their vehicles.
Bosch doesn't expect the chip shortage to be resolved in 2022 6 photos
Photo: Bosch
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Unfortunately, the nightmare wouldn’t come to an end too soon, and now the new Bosch CEO says we should all get ready for a very difficult 2022.

It’s all because the chip crisis is here to stay, Stefan Hartung has recently been quoted as saying, so it’s hard to believe the production of cars would return to normal.

Hartung explains that the lack of chips makes it extremely challenging not only to install certain systems on a car but also to build the vehicle itself. And dealing with the whole thing will be extremely difficult next year, especially as the world is now struggling with another wave of the health crisis.

Indeed, carmakers are slowly preparing for new disruptions in their production operations, especially as industry analysts expect the chip supply to be once again impacted in early 2022.

Until now, the majority of carmakers turned to similar decisions to deal with the lack of chips. While some temporarily halted the production of certain models at one or multiple facilities, others tried to keep the manufacturing process going but removed non-critical systems from cars.

BMW, for instance, is no longer installing touch-capable displays on certain models, while GM previously removed start-stop systems from some vehicles. Cadillac has recently embraced this approach as well, as the company decided to pull the parking assist features from several 2022 models.

The first quarter of 2022 is likely to bring similar struggles, with analysts now estimating a slight recovery towards the last months of the year. But of course, everything depends on the global health issue, as foundries themselves are still struggling with lockdowns and restrictions impacting their daily operations.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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