we want to buy more and more, but the industry manufactures less

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The automotive supply chain is broken. To the shortage of semiconductors was added more than a month ago the War in Ukraine, a political and economic situation that has caused a reduction in vehicle production expectations of up to 25 million in the remainder of the decade.

25 million. In its latest report, the consulting firm S&P Global Mobility has reviewed its numbers and ensures that, in the remainder of the decade, 25 million fewer cars will be produced than planned. In fact, for 2022 and 2023 the numbers have been recalculated and a drop in production of between 2.6 and four million is expected in the worst case.

According to S&P Global Mobility, 81.6 million vehicles will be manufactured worldwide in 2022 and the figure will rise to 88.5 million light cars in 2023. Once again, the shortage of components, the increase in the cost of raw materials and the War in Ukraine are once again the main ones.

In free fall. Although the consultancy also downgrades the prospects for vehicle production in North America, Europe is the market that most hampers vehicle production. According to ACEA, in 2021 European production contracted by 7.1% compared to 2020, a period in which factory stoppages were constant due to the Covid-19 lockdowns.

In fact, the two largest vehicle producers, Germany and Spain, saw more than half a million vehicles disappear from their factories. Germany manufactured 13.2% fewer vehicles and our country experienced a fall of 8.9%. The highest figures among the ten largest vehicle producers in Europe.

difficult replacement. The main reason that has aggravated an already hopeless situation has been the war in Ukraine. S&P Global Mobility estimates that 1.7 million vehicles will cease to be produced in the Old Continent in 2022. Almost a million of them come directly from Ukrainian or Russian factories.

But, in addition, the war has hardened production conditions. A good handful of European plants have had to close their production lines for not getting cable harnesses for their vehicles. These came from the Ukraine and the industry had centralized its production in this country because it was a cheaper place. It is estimated that finding new suppliers can take between three and ten months. To this must be added the companies that have ceased production in Russia. In this case, Renault may be the biggest victim.

more expensive. With a shortage of components and a constant increase in the price of raw materials, it was to be expected that the prices of the vehicles would rise. At this time, it is estimated that 89% of buyers are purchasing vehicles that are at least 5% more expensive. The main reason is that, with this production, demand continues to exceed supply.

The brands have proposed to end the dealers.  And they have a weapon: the electric car

fewer customers. The break in the supply chain has caused an almost unprecedented photograph in the automobile market: supply shortages. At the moment, the demand for automobiles continues to exceed the production capacity of the manufacturers and whoever wants a new car has to be patient in some cases.

However, the trend is that the pressure on the market is easing. Potential consumers are stopping looking for vehicles as a result of rising oil, shopping bag and vehicle prices. Despite everything, before the invasion of Ukraine it was estimated that there was a demand for 10 million vehicles above the production capacity of the manufacturers. Now, this figure would have been reduced by a third, according to S&P Global Mobility.

The automotive supply chain is broken. To the shortage of semiconductors was added more than a month ago the War…

The automotive supply chain is broken. To the shortage of semiconductors was added more than a month ago the War…

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