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BMW keeps factory open despite lack of semiconductors

The ongoing semiconductor shortage has caused havoc for some automakers.Some had to do Production stopped at some factories, Suddenly stop vehicle production for some models. Like General Motors, Stop offering certain features on models like the Chevrolet Silverado 1500.. Many car makers are affected by a chip shortage, BMW And Mercedes-Benz I was able to keep things going in the United States

according to Automotive NewsBoth BMW and Mercedes were able to produce fully operational vehicles at their plants in the southern United States. One of the easy answers on how these luxury brands can keep their cars running without problems is because they can’t afford to stop. Crossovers manufactured by BMW and Mercedes in the United States are an important tool for revenue in the United States.

“They can’t fail,” Joe McCabe, CEO of AutoForecast Solutions, told the outlet. These plants are “very important to the global portfolio of these two brands.”

BMW’s plant in Greer, South Carolina X7 SUV And, as the outlet points out, 97% of its medium-sized crossovers. The Mercedes-Benz plant in Vans, Alabama produces 94% of the world’s production. GLE Medium SUV About 87% of total production GLS SUV.. Medium and large SUVs continue to be popular options, with Mercedes and BMW being strong segments. In addition, medium and large SUVs are a very profitable segment for BMW and Mercedes. Therefore, high profit margins are another reason to try to keep the door open for as long as possible.

“There is a lot of competition in the medium and large crossover segments of North America,” said McCabe. “The brand is going up the value chain to take over BMW and Mercedes.”

Mercedes’ US factory was able to continue working uninterrupted by a chip shortage, but automakers’ global factories weren’t so lucky. Automotive News Mercedes plants in Bremen, Rastatt and Sindelfingen, Germany, claim to be declining in production. Daimler has released a statement stating that global semiconductor shortages will impact global sales in the first quarter of 2021.

Being able to build cars in the United States while other car makers had to close their factories gives BMW and Mercedes a huge advantage. according to Bloomberg, Stellantis idled five factories in North America until mid-April. Ford The Dearborn factory was temporarily closed from March 25th to March 29th. Nissan I had to let the factory play. GM’s two plants will be shut down for two weeks starting March 29th. Toyota The output of 10 models has been reduced.And Honda Stopped production at several plants in North America.

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