Biz Extra

Published: January 17, 2022 | Updated: February 9, 2022

Matt Peacock, MD, Star Tech, on supply issues in the automotive sector worsened by Covid

By Andrew Diprose, editor

Matt Peacock, MD of Star Tech in Poole, discusses the shortage of key technology components for cars.

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The automotive industry has been hit hard by the pandemic in many ways.

The disruption has resulted in reduced production of new cars and vehicle components.

One significant hurdle in technology supply has been the shortage of semiconductor chips, which are used extensively in electronic circuits in new car parts.

This shortage was present before the pandemic due to a global rise in demand for technology but has certainly been worsened since Covid struck.

There are now claims that the shortage is here to stay in 2022 and could still be impacting the industry as far out as 2024.

This shortage would have been damaging enough ordinarily for the automotive sector.

However, considering targets for decarbonisation and developing autonomous cars, this is all very bad timing.

Industry analysis company IHS Markit has reported that the shortage could cut global production by an estimated 700,000 vehicles year on year, although the final figure could be even higher.

Many firms, including Mercedes-Benz, BMW and Jaguar Land Rover, have been working to agree significant deals with large electronics manufacturers to ensure a consistent supply of semiconductors well into the future.

BMW CEO Oliver Zipse warned last year these supply issues would continue and that “the gravity of the situation requires a strong and coordinated response across the European Union”.

Here at Star Tech, where we specialise in Mercedes-Benz, BMW and Jaguar, we have certainly experienced issues with the supply of parts containing semiconductors over the last year.

Things are improving and we do whatever we can to ensure that our customers and their cars are kept on the road.

However, it’s not without challenges.

Worst case scenario, customers are totally unaware of the issue and wonder why their broken-down car has to stay with us for much longer than planned.

In this situation we are all at the mercy of the supply chain and it can be very frustrating for customers and ourselves.

A number of manufacturers are urgently seeking to overhaul their components supply chains as a workaround to ensure continued production, so let’s hope this issue is resolved sooner than is expected.

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Star Tech Ltd, in Poole, are specialists in Mercedes-Benz, BMW, Jaguar, Smart and Mini covering all aspects of car servicing, repairs, MOTs, diagnostics, air conditioning and much more besides.

If you would like to book with the service team, contact Ricki or Colin on 01202 694758 to find out more.