As per a vehicle executive, the chip shortage could extend until 2023

According to a top German car industry official, the chip shortage that is hurting global car production might last until 2022 or possibly 2023.

“Covid was a stress test for the industry, which required a complete evaluation of its supply networks”. Said Daimler chairman Ola Källenius,

In a variety of businesses, semiconductor chip supplies have fallen short of demand.

Car manufacturing is one of them, having recovered quickly from the pandemic.

Mr. Källenius, who is also the CEO of Mercedes-Benz, told the BBC at the International Mobility show in Munich that the shortages had prompted shutdowns in Malaysia and would “seriously impact production and sales in the third quarter.”

From a structural standpoint, chip producers predict that this will leak until 2022 and then progressively improve, “he added.

This means that the shortages might endure until 2023, but “hopefully not to the extent that we’ve seen here in the previous few months,” he said.

Covid, according to Mr. Källenius, was a “stress test” and a “traffic jam” for the automobile industry. He noted that it will take some time for things to get back to normal.

“However, we will take what we’ve learned from this stress test and dig even deeper into all layers of the supply chain to make the system more resilient,” he said.

Harald Kroeger, a board member at Bosch, one of the world’s largest parts and systems suppliers, was also in attendance.

Mr. Kroeger told the BBC that the main reason for the car market’s supply shortage is that demand has increased “dramatically,” which he described as positive news for the sector.

“We were in the dark age of Corona just a year ago, and sales were down, and no one predicted such a swift revival of the car market,” he remarked.

“And now we’re clearly sprinting to meet that need.”