Carmakers feel chip crisis is easing as global growth slows

The global semiconductor shortage that has bogged down the auto industry for almost two years is showing signs of easing, at least for now.

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WASHINGTON • Mercedes-Benz, Daimler Truck Holding and BMW are among carmakers now getting enough of the high-tech components to produce at full capacity after experiencing crippling outages for months.

The breakthrough comes earlier than the companies predicted and marks a bright spot for an industry facing a deteriorating economy and inflation while managing a historic transition to electric vehicle production.

Manufacturers are cheering the chip supply improvement but are not declaring victory yet.

“We are still monitoring it week to week but up to now, basically worldwide, we had no issues running production,” said Dr Jorg Burzer, Mercedes’ head of production and supply chain management.

Supply issues occur “here and there”, he said, “but nothing compared with what it was like last year”.

Even as demand for cars boomed, auto manufacturers have had to curtail output as plants globally could not source enough chips critical for increasingly computerised vehicles.