BMW has been forced to suspend production of the Mini for the second time in 12 months with the German brand citing a shortage of computer chips for the stoppage. Although production is expected to restart on Saturday (26 February), the knock-on effect in terms of delayed orders and deliveries from other suppliers to the plant is significant. Around 3,500 workers are based at Oxford which normally produces about 5,000 cars a week.

In a statement BMW said: "As a result of the global semiconductor shortage, an issue that has affected the entire automotive industry for the last year, Plant Oxford is making some short-term adjustments to its production schedule.Plant Oxford is standing down five days of production - Monday 21 February to Friday 25 February inclusive, for all shifts. We are monitoring the situation very closely and are in constant communication with our associates and suppliers."

The news comes as the entire car business battles with a crippling lack of semi-conductors (microchips). Earlier this week, Volkswagen adjusted its entire ID.3 range in an effort to streamline production at its factory in Germany. Customers are currently only able to order ID.3 models in Life trim, which has the lowest level of standard equipment. The brand plans to reinstate higher spec models as the shortage eases. 

Oxford-built MINI Electric deliveries will be hit by the latest stoppage

What is a semiconductor and why is there a shortage?

A semiconductor or microchip is an integral component in almost all electrical devices. Everything from an electric toothbrush to an Airbus features a mass of semiconductors that control the behaviour of the product. A modern car, whether it is electric or piston-powered, can have up to 3,000 semiconductors in its various infotainment and control systems. 

Until the pandemic, the supply of semiconductors was manageable. When the pandemic hit, demand for items such as laptops, tablets and home printers rocketed. At the same time, demand for cars crashed as dealerships across the world were forced to close their doors. Car plants were also shuttered as workers were ordered to stay at home. 

Due to the nature of the automotive supply industry, which operates on an ‘on demand’ or ‘just in time’ supply system, semiconductor deliveries were diverted to the electronics companies. And, just like the toilet roll shortages of 2020, many manufacturers sought to secure production by snapping up any additional supply. 

As a result, when car manufacturing resumed at full speed, semiconductors had become a rare commodity. To compound the issue, in March 2021 a fire at one of the world’s biggest semiconductor factories – run by Renesas in Japan - severely restricted global supply. The plant was responsible for supplying Toyota, Nissan and Honda and is only now starting to produce semiconductors in large numbers. 

Even the most optimistic of industry supply experts expects shortages to continue for at least the next six months. 

Toyota, Stellantis, Ford, Nissan, BMW and Renault, have all been forced to reduce production volumes in recent months as they struggle to secure enough semiconductors. Earlier this month, JLR said that it expected the chip shortage to continue throughout this year. 

A typical modern car contains around 3,000 of these. And they're currently in very short supply...