Conti boss: Setzer sees high raw material costs as a problem

Continental boss Nikolai Setzer considers the sometimes enormous increase in the cost of metallic raw materials to be a major challenge for the automotive industry – in addition to the chronic shortage of electronic chips. “The raw material costs already play a role, here too we have to find solutions in partnership with our customers,” said the CEO of the Dax group. The supplier is definitely feeling price jumps in aluminum, which is used in hydraulic brake systems, for example. “As a group as a whole, we need aluminum in smaller quantities than others. But there is a shortage, there is no question about that. At the moment we can still manage it.”

The same applies to the light metal magnesium, said Setzer. China dominates production for the element. In connection with new controls on energy and electricity consumption, Beijing limited the subsidy. According to the German Raw Materials Agency, magnesium prices for deliveries from the People’s Republic have risen sharply since last year.

No all-clear for the lack of chips

Setzer sees no reason to give the all-clear in the supply crisis for semiconductor components either. “It’s about managing the supply chains as best you can in the current situation,” he said. “Of course, safety stocks and a certain size always help. But better exchange and more reliable planning are also necessary.” Contracts with chip manufacturers would have to be coordinated more precisely. According to Setzer, the delivery bottlenecks, which are now slowing down many industries, are likely to persist well into the coming year.

The Conti boss estimates that the run-up of electromobility is not endangered by the missing chips. “At least the same applies here as for the combustion engine and general vehicles”. Semiconductors are installed in many places. (dpa / swi)

By the way: Conti boss Nikolai Setzer speaks on Tuesday Automobile week Congress. His topic: “The Transformation of Mobility” Learn more

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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