January 19, 2021

Andrew Campbell 

Under the setback from lockdowns in many countries amid the resurgence of coronavirus pandemic, the automobile industry has shown a peculiar phenomenon. During the most recent interview of Audi automaker's CEO Markus Duesmann by the Financial Times, the semiconductor shortage is forcing Audi to suspend the manufacturing production and idle more than 10,000 furlough workers.

According to the interview published on January 17, Mr. Duesmann referred to the microchips shortage as a crisis upon a crisis. The coronavirus pandemic has suspended global automobile demand since the beginning of 2020. But Audi has received unexpectedly huge demand from China's market in the 4th quarter of 2020.

However, the coronavirus pandemic has kept microchip suppliers suspended the production of computer chips for car brakes, steering, electric windows, and distance sensors. Thus, the rebound like Audi has troubled many automakers without microchips.

The world’s leading carmaker Volkswagen (VW) had announced in December 2020 for major manufacturing disruption in the first quarter of 2021. In addition, carmakers including Daimler AG, Ford Motor Co., Fiat Chrysler Automobiles NV, Honda Motor Co., and Nissan Motor Co. also expressed their concerns over the microchips shortage.

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