| 20 June 2024, Thursday |

Volkswagen expects chip supply to remain tight in coming months

Volkswagen expects semiconductor supplies to the car sector to remain tight in the next months, head of the carmaker’s namesake brand was cited as saying on Saturday.

Ralf Brandstaetter, CEO of the Volkswagen brand and member of the carmaker’s management board, told German news agency dpa “I think the situation will remain tense.”

Brandstaetter said a blaze at a factory operated by automotive chip maker Renesas Electronics Corp, in addition to Texas snowstorms that have hurt factory production, had effectively idled output.

“The impact will certainly be felt in the coming months,” Brandstaetter said, noting that Volkswagen’s procurement task force was so busy dealing with the issue which remained at the top of the agenda of Volkswagen’s management board.

In March, CEO Herbert Diess said Volkswagen AG has been unable to build 100,000 vehicles due to the shortage, 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.

Last month, Wayne Griffiths, president of Volkswagen’s Spanish brand SEAT, said the challenges caused by the shortage were likely to intensify in the second quarter.

  • Reuters