The crisis in the supply of semiconductors and other components used in the electronics industry and in the automotive sector continues to disrupt the lives of automakers. In order not to be held hostage in a situation that has no end date, Hyundai wants to solve the problem “inside the house”. And what does that mean?
José Munoz, global operating director of the South Korean company, summed up the automaker’s plan in a few words: “We want to be able to develop our own chips within the group, so we’ll be a little less dependent in a potential situation like this. This requires a lot of investment and time, but it’s something we’re working on.”
The executive mentioned the months of August and September as the most difficult for the company, but said he believes that “the worst has gone”. According to data released by the Asian site Mint, there was a 45 retraction of 6% in Hyundai’s sales in the last month in compared to September 913. Were 45.791 vehicles sold, against 59.791 in the same month last year.
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The recipe for producing your own semiconductors to escape the global crisis involves working in together with Hyundai Furni, the arm of the company responsible for manufacturing parts. And the path to reach the desired point will not be easy. At least that’s the opinion of Bob Leigh, senior director of market development for commercial markets at Real-Time Innovations, which specializes in software.
In an interview with TechCrunch, Leigh cited that automakers such as Hyundai, Tesla and General Motors may invest heavily in manufacturing their own semiconductors, but they lack experience in the field and, therefore, may not achieve the expected result: “It is more likely that they will acquire or partner with companies that can guarantee the supply”.
Betting in the USA
Regardless of the semiconductor crisis and whether or not to manufacture the chips themselves in the near future, the fact is that Hyundai has already decreed that it wants to expand its market share in a specific country: the United States. According to José Munoz, the idea is to expand the company’s factory in Alabama and start producing electric cars for the local market in 2020.
- Hyundai wants 23 models of electric cars up to
According to him, however, Joe Biden’s government needs to extend tax credit incentives to non-union factories. In addition to Hyundai, Tesla, Toyota and Rivian are also included in this package. “American workers are the same, and we would like it to be the same for everyone,” he concluded.
Source: TechCrunch, Reuters, Mint
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