Volkswagen expects tight chip supply in coming months, sees a better 2nd half on 2021



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Volkswagen expects tight chip supply in coming months, sees a better 2nd half on 2021

Volkswagen AG, the Wolfsburg-based German automotive industry giant which had sold off the highest volume of passenger cars despite a global-scale demand-crunch for two successive years before the onset of pandemic outbreak, said on Saturday that the German carmaker was expecting a current chip shortage to linger further deep into the year, however, had forecasted a somewhat better second-half of the year.

In point of fact, in an interview with German news agency dpa, Ralf Brandstaetter, the Chief of Volkswagen brand alongside a member of VW’s management board, was quoted saying that the situation would likely to remain tense over the coming months citing a fire at a chip-making factory operated by Renesas Electronics Corp alongside a rare winter storm in Texas that had effectively led to a near-stagnation in output.

If truth is to be told, global automotive industry had been met with sweeping shortage of chips over recent months, while a number of top-tier carmakers likes of General Motors, Ford alongside VW had been forced to slash output.

On top of that, a media outlet report published later on March had unveiled that the global-scale semiconductor shortage had spread into smartphone industry as well and had added to hindrances on production lines of Samsung’s high-end smartphones.

Volkswagen Chief says chip shortage to worsen over coming months

The German news agency dpa, in tandem, had quoted VW brand Chief Executive Brandstaetter as saying “The impact will certainly be felt in the coming months,” while Brandstaetter had also added that the blazing issue had been a top agenda for the German auto giant’s management board over recent weeks, since the chip shortage would force the carmaker to slash output by as many as 100,000 units, the company Chief Herbert Diess had told in a press release last month.

Nevertheless, adding to a shimmering ray of hope at the end of tunnel, Brandstaetter said to dpa that the shortage might be eased off over second half of the year.