Volkswagen Expects Chip Supply To Remain Tight In Coming Months
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Volkswagen expects semiconductor supplies to the car sector to remain tight in coming months, the head of the carmaker’s namesake brand was quoted as saying on Saturday.
“I think the situation will remain tense,” Ralf Brandstaetter, CEO of the Volkswagen brand and member of the carmaker’s management board, told German news agency dpa.
He said a fire at a factory operated by automotive chip maker Renesas Electronics Corp, as well as snowstorms in Texas that have hurt factory production, had effectively idled output.
“The impact will certainly be felt in the coming months,” Brandstaetter said, adding Volkswagen’s procurement task force was busy around the clock dealing with the issue which remained at the top of the agenda of Volkswagen’s management board.
Volkswagen AG has been unable to build 100,000 cars due to the shortage, CEO Herbert Diess said in March, adding the group would not be able to make up for the shortfall in 2021.
Brandstaetter said the situation was expected to ease somewhat in the second half of the year.
Wayne Griffiths, president of Volkswagen’s Spanish brand SEAT, said last month the challenges caused by the shortage were likely to intensify in the second quarter.
Questions & Answers
Q.Which specific events have caused the ongoing chip shortage for Volkswagen?
Which specific events have caused the ongoing chip shortage for Volkswagen?
A fire at a Renesas Electronics factory and snowstorms in Texas, which affected factory production, are cited as reasons for the current semiconductor supply issues.
Q.How many cars has Volkswagen been unable to produce because of this shortage?
How many cars has Volkswagen been unable to produce because of this shortage?
Volkswagen AG has been unable to build 100,000 cars due to the semiconductor shortage. The company does not expect to make up for this shortfall in 2021.
Q.When does Volkswagen expect the chip supply situation to improve?
When does Volkswagen expect the chip supply situation to improve?
Ralf Brandstaetter, head of the Volkswagen brand, expects the situation to ease somewhat during the second half of the current year.
Q.Will the impact of the shortage be felt immediately, or will it worsen in the short term?
Will the impact of the shortage be felt immediately, or will it worsen in the short term?
Ralf Brandstaetter stated the impact would certainly be felt in the coming months. Wayne Griffiths of SEAT also predicted the challenges would intensify in the second quarter.
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