The magnesium crisis is real. European motorcycle makers facing the crunch
With the global automobile industry yet to be out of the chip shortage, a new crisis is looming over the head of the industry stakeholders. This time, in form of magnesium shortfall. The European motorcycle manufacturers are already facing the heat of magnesium shortage, claims a report by Le Repaire Des Motards.
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The magnesium crisis is going to add woe to worry for the auto industry, as it would severely disrupt the supply chain for the OEMs and component manufacturers.
The report claims that motorcycle chassis and high-spec performance components for motorcycles such as wheels and cases are built with magnesium and a shortage in the supply for that will disrupt the manufacturing. Currently, China supplies 95 per cent of the total magnesium demand in Europe. However, supply for that is falling short of demand.
The recent flood in China has resulted in the closure of a majority of magnesium smelters. This has drastically impacted the production of magnesium in the country, eventually affecting the supply chain. The European Association of Motorcycle Manufacturers (ACEM) fears the shortage could cripple the industry, as it is already facing a shortfall of semiconductors.
This could impact the Indian market as well. Brands such as Triumph, BMW Motorrad, Benelli bring their products from Europe. With an impacted production in the continent, the import of these motorcycles can be affected as well.
Not only the motorcycle manufacturers, but carmakers too are facing an upcoming crisis in form of a magnesium shortage. The carmakers use magnesium in various parts and for vehicle chassis as well. The auto component manufacturers too are expected to feel the heat due to the crisis. Experts believe that this shortage would result in several auto plants shutting down production temporarily.