The shortage of electronic systems needed for new vehicle production shows no sign of abating,  and one expert has warned that even the mid-point has not been reached yet.

(L to R) Mark Tisshaw, Mike Hawes, Ian Henry

Speaking at an Autocar Business webinar, Ian Henry from consultancy Auto Analysis acknowledged that although the total chip count in vehicles is reducing, the nature of much of the remaining silicon is extremely complex, requiring specialist production. “That is where we might see some changes in the nature of the supply chain” he noted, speculating that module suppliers such as Bosch could either form closer relationships with silicon factories, or potentially establish such manufacturing facilities themselves. 


SMMT boss Mike Hawes was also on the call and able to give some perspective on what has caused the crisis. “What we saw last year was a syncopated spread of the virus” he said. “Europe was in lockdown, Asia wasn’t”. This disparity grew the demand for electronic products of all types, and the automotive sector was near the back of the queue as it accounts for only around ten percent of chip plant orders. 

“It is this uncertain situation that the industry faces, with the unreliability of delivery”, concluded Hawes.  

Don’t miss the next printed CAT Magazine. Subscribe for free here


Published by Greg Whitaker

Editor of CAT Magazine and an experienced motoring journalist @GregWhitaker5

Why transitioning to EVs is a money maker for garages

One of main keys to profitability is because ICE-only parts are suffering from a higher inflation rate compared to their EV counterparts

Read More

Pothole damage sees alloy repairs jump 58% in two years

The country’s main political parties vow to fill in potholes as part of their 4 July election pledges

Read More

GSF opens 10,000 sq ft Birmingham branch; Crawley, Southgate to follow

Located close to Birmingham city centre, it features a fleet of five vans, two bikes, and two electric Tuk Tuk-style bikes

Read More

Skills gap “a timebomb” for aftermarket, says GSF CEO

Steve Horne said a lack of workers was stifling the market’s potential and increasing costs for motorists

Read More

Legal hand car washes “outnumbered” by illegal sites as £2.5m in fines handed out

Home Office data revealed that 87 hand car washes across the UK were fined some £2.5 million for ‘right to work’ offences in 2023

Read More

Go to comments

Your email address will not be published. Required fields are marked *