Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The European Automobile Manufacturers Association (ACEA) has urged the European Commission (EC) to address the current shortage of semiconductors in the European automotive sector.

 

In a letter to the commission ACEA’s director-general, Erik Mark Huitema asked the EC to coordinate an extensive outreach to the world’s semiconductor suppliers to alleviate the issue with the shortage. Moreover, he requested support from Asian suppliers, especially in Taiwan.

 

Huitema reiterated that the shortage could continue until Q3 2021 and emphasized that carmakers may have to postpone deliveries and reduce employment in manufacturing plants due to this issue. A shortfall of semiconductors will also trickle down to capacity utilization and sales.

 

ACEA has forecasted that European auto production volumes may be considerably lower than expected, weakening the continent’s position in a competitive global automobile manufacturing market. 

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