Kia Motors intends to reduce some of the functions in line with the type of chips out of stock and launch a simplified version of the car at a reduced price. The picture shows the Kia K8 model. (taken from Kia)
The problem of insufficient supply of automotive chips is expected to continue for one to two years, and the South Korean car makers have recently continued to spread the news of shutdown and production reduction, the industry pointed out that Kia Motors (Kia) intends to cooperate with the type of chip shortage to reduce some of the functions, and launch a simplified version of the car at a reduced price.
Global car manufacturers are facing the dilemma of car chip shortage, although governments have stepped up efforts to strive for cooperation with international semiconductor manufacturers, but the semiconductor process takes a long time, the industry expects that the demand gap may take 2 to 3 years to make up, previously said that the amount of South Korea has been prepared for Hyundai, Kia Motors is affected by the shutdown situation is gradually expanding.
Yonhap News Agency quoted the industry, reporting that Hyundai Motor may depend on the status of car chip inventory to decide whether to shut down some factories next week; Kia Motors has even prepared to reduce prices to launch a functional simplified version of the program in response.
Kia Motors has even prepared a price reduction plan to launch a simplified version of the car in response. Taking the rear parking collision prevention assistant and remote intelligent parking assistance system, which are necessary for Kia K8 models above the Noblesse level, as an example, the price will be reduced by about 400,000 won (about $360) after subtracting these two functions.
It is worth noting that, according to the report, if car manufacturers face the dilemma of having to cut down on existing car features, the original launch schedule is likely to be affected for electric vehicles, which use two to three times more chips compared to those used in cars.
Hyundai’s first electric recreational vehicle, which was released in the first quarter of this year, has been delayed due to a shortage of chips and motor supply problems.
Hyundai and Kia Motors in South Korea domestic market share of about 7 to 8 percent, due to chip shortages and production cuts on the parts industry has also caused impact, according to the Korean Automobile Manufacturers Association (KAMA) statistics, by the South Korean car manufacturers from March to reduce production, parts delivery reduced by about 1 to 2 percent, the parts industry operating profit rate also fell to about 1%.
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