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German carmakers enlist Merkel as they battle chip shortage

Car industry lobby is hoping political pressure can be used to accelerate production in Asia

Germany’s carmakers have turned to Angela Merkel’s government in an effort to help ease a massive shortage in semiconductors that threatens to cripple production in one of the country’s biggest industries.

An unexpected recovery in global demand for cars towards the end of last year led to a sudden surge in demand for crucial chips, which semiconductor manufacturers, whose largest customers are smartphone and tablet producers, were unable to meet.

The German industry is hoping that political intervention could help move car suppliers up the chipmakers’ list of priority customers, particularly in Asia. However, carmakers are currently outside the top 10 on that list, according to industry insiders, with technology giants such as Samsung and Huawei taking precedence.

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