The global shortage of computer chips is placing an increasing burden on the economy. German SMEs are also struggling with production losses. Automotive suppliers hit particularly hard. Experts expect catastrophic consequences.
In 2021, around eleven million cars will probably not be produced as a result of the chip shortage, as reported by the "handelsblatt" newspaper with reference to a study by the boston consulting group (BCG). Other experts therefore expect sales losses of 180 billion euros. If this scenario materializes, car sales will fall below the levels of the crisis-ridden year 2020.
The chip crisis is hitting automotive suppliers at a time when they were hoping for rising sales after the corona-related lockdowns. They would urgently need it to make up for the loss of sales caused by the pandemic.
- Also interesting:chip shortage – used cars are becoming more and more expensive
But hopes are in danger of being dashed. Suddenly there is a fear of bankruptcies. According to the report, Albert Waas of BCG said: "medium-sized suppliers with sales of less than one billion euros are particularly at risk of insolvency."
Wave of insolvencies: association of the automotive supply industry expects the worst
The expert is not alone in sounding the alarm. The association of the automotive supply industry even expects a wave of insolvencies. In addition to the shortage of chips, rising raw material prices are hitting the industry hard.
But it’s not just the automotive supply industry that has to prepare for difficult times, as the following table shows.
Fears are spreading in these sectors
First SMEs are broke
Which providers are specifically affected by the crisis?? The first providers have already thrown in the towel. For example, bolta-werke in diepersdorf, franconia: the company filed for insolvency at the end of september and sent its 1,000 employees home. The reason for the disaster is the lack of chips and the lack of orders from car manufacturers.
the supplier heinze from herford in westphalia met the same fate. 700 employees here are hoping for an economic miracle and to save their jobs. But this would require car manufacturers to order more components, which doesn’t look like it will happen at the moment.
Apply for a car loan quickly and easily here (ad)
suppliers revise forecasts downward
The bankruptcy of the companies mentioned is only the tip of the iceberg. Other suppliers had to revise their sales and earnings expectations sharply downward. For example, hella , fraurecia and the US supplier aptiv, as stated in the report.
Even the big players are not immune to drastic losses. Continental previously expected charges of 200 million euros for 2021 – due to missing chips and rising raw material prices. But there are increasing signs that the group’s headquarters has calculated too optimistically.
Banks sit on their money
One possible solution to their financial problems would be for suppliers to raise money from their house banks in order to survive the dry spell. But it doesn’t seem to be that easy. According to industry experts, automotive suppliers are reporting increasing debts on their balance sheets. Not a good time to ask the banks for loans. And even if banks open their floodgates – with higher risks, they also collect higher fees for their services. Which puts even more pressure on the beleaguered supplier industry.
Although some carmakers have recently surprised with high profits, experts don’t expect the chip crisis to end quickly. BCG predicts that about five million fewer cars will be produced in 2022. This would mean that the shortfall would still be half as high as in the current year. Not until 2023 do experts hope for a sufficient supply of chips. By then, more suppliers are likely to have given up.
The FOCUS online guide answers all important questions about pensions on 135 pages. Plus 65 pages forms.