While the global auto industry is yet to emerge from the chip shortage, a new crisis is looming over the heads of industry players. This time in the form of a lack of magnesium. European motorcycle manufacturers are already facing the heat of the magnesium shortage, says a report from Repaire Des Motards.
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The magnesium crisis will add worry to the auto industry as it would severely disrupt the supply chain of OEMs and component manufacturers.
The report claims that motorcycle chassis and high performance motorcycle components such as wheels and housings are built with magnesium and that a shortage of supply will disrupt manufacturing. Currently, China supplies 95 percent of the total demand for magnesium in Europe. However, the supply for this is falling short of the demand.
The recent floods in China have resulted in the closure of a majority of magnesium smelters. This had a huge impact on magnesium production in the country, ultimately affecting the supply chain. The European Motorcycle Manufacturers Association (ACEM) fears the shortage could cripple the industry, as it already faces a shortage of semiconductors.
It could also have an impact on the Indian market. Brands such as Triumph, BMW Motorrad, Benelli bring their products from Europe. With production impacted on the continent, the import of these motorcycles may also be affected.
Not only motorcycle manufacturers but also car manufacturers are facing a coming crisis in the form of magnesium shortage. Car manufacturers use magnesium in various parts as well as for vehicle frames. Auto component makers are also expected to feel the heat from the crisis. Experts believe that this shortage would lead to the temporary closure of several auto factories.