BMW boss Oliver Gypsy said today that the shortage of semiconductors plaguing the automotive industry over the past two years is expected to be good by 2023.
“We are still at the height of the chip deficit,” he told the German newspaper Neue Zuercher Zeitung.
“I hope we start to see the latest improvement next year, but we still have to address a fundamental deficit in 2023.”
Despite the supply chain problems, automotive manufacturers have grown in 2021, beating pre-epidemic earnings due to higher prices and increased sales.
The company, which went up to bn 16bn, reported a 10.3 percent earnings margin after selling 2.5 million vehicles.
But a war-induced supply chain disruption in Ukraine forced it to lower its 2022 profit margin forecast, Citi AM reported.
BMW says its EBIT margin will be reduced from 8 to 10 percent to 7 to 9 percent
In the UK, automotive production fell 41.3 percent due to chip shortages.
According to the Society of Motor Manufacturers and Traders (SMMT), production was 61,657 units – the worst since February 2009.
“The sector is optimistic that recovery has entered 2022, but that recovery has not yet begun, and urgent action is needed to ensure that the sector remains globally competitive in order to reduce the cost of spiraling fuel and encourage investment needed for growth, job security and supply.” . Net Zero Ambition, ”said SMMT CEO Mike House.