This week BMW confirmed withAuto-blogthat its shipping vehicles without touchscreen functionality in response to the semiconductor chip shortage.
The Backup Assistant enables automatic reversing in narrow parking areas and those with poor visibility.
Buyers receive $500 compensation for the lowered functionalities… but is that enough compensation?
Reduced functionalities have been a trend this year
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In March, General Motors announced it was building 2021 Silverado and Sierra pickupswithout active fuel management modules.
Moving lumbar was removed only in front passenger seat of 3/Y (obv not there in rear seats).
Logs showed almost no usage.
Not worth cost/mass for everyone when almost never used.
Prices increasing due to major supply chain price pressure industry-wide.
The general consensus was to prepare to pay more and wait longer for the cars you want.
This has unfortunately borne fruit.
Cars are either extremely hard to buy or higher in price.
Carmakers are allocating their chips to the most profitable cars and SUVs, making lower-priced cars less accessible.
Thomas King, president of the data and analytics division at J.D.
Powerbelievesthat the lack of inventory is causing record transaction prices and profit for each car sold.
October showed a record high of $43,999, the fifth consecutive month above $40,000.
This is 19.3% higher than in October 2020 when prices hit $36,887.
But challenges await for both automakers and buyers.
Automakers have been investing big bucks and ambitious timelines for creating new electric and autonomous vehicles.
These require a lot of chips.Automakers use about 10% of the chips on the semiconductor market.
A modern electric vehicle can use up to3,000 chips.Oof.
The shortage will stall production.
It also leaves a mass of impatient consumers waiting for their orders.
Are they prepared to opt for cars with reduced tech?
Or will they cancel their orders altogether?
The chip shortage will remain significant until at least Q2 2022.
This is also a significant blow for innovation.
We can expect a much longer wait for future tech like expanded autonomous functionalities.
This is going to hurt for a while yet.
Story byCate Lawrence
Cate Lawrence is an Australian tech journo living in Berlin.
