VW expects chip shortage to decrease in Q3 2021

VW expects chip shortage to decrease in Q3 2021

June 10, 2021 0 By autotimesnews

The head of procurement said the automaker had reached its “lowest point” with supply problems.

The VW Group says its production has been hit by a shortage of semiconductors, but the shortage of essential parts for new cars is expected to decrease in the third quarter of 2021. A member of the board told about this in an interview with the newspaper Handelsblatt.

“We have reached the lowest point so far. We have the most difficult 6 weeks ahead of us, ”said Murat Axel, head of purchasing at VW, in an interview with the newspaper.

He said he expects about 10% of chip shortages in the long term, as it takes up to 2 years to ramp up production capacity. He added that Volkswagen will prepare for problems by expanding stockpiles of chips.

Automakers and electronics manufacturers around the world are hit hard by chip production delays caused by global shortages.

In March, CEO Herbert Diess said VW was unable to assemble around 100,000 vehicles due to a shortage, adding that the group would not be able to fill it in 2021.