VW restricts production due to ongoing chip shortage
VW restricts production due to ongoing chip shortages.
The German auto giant Volkswagen will cut production at its main plant due to persistent problems with the global supply of computer chips, a spokesman for the AFP news agency said on Friday.
After the summer vacation for employees in Germany, work on the assembly line at the Wolfsburg site will be “restricted” and will have to “adapt to the supply situation,” said the spokesman.
In the coming week, the cars will only be produced in the factory during the early shift, while the rest of the production will be stopped.
According to the automaker, the shortage of semiconductors will continue.
The renewed shortage is in part the result of “Covid-19 outbreaks, particularly in Malaysia, which have led to plant closings for semiconductor manufacturers,” Volkswagen said.
However, the company hopes to make up for the production losses “as far as possible” in the course of the second half of the year.
Volkswagen’s own car brand Audi also announced earlier this week that it would be delaying the resumption of production on some of its lines in Germany due to the “volatile” supply situation.
Automobile manufacturers are among the hardest hit by the scarcity of chips, key components in both electric and conventional vehicles.
On Thursday, the Japanese company Toyota, the world’s largest automaker, announced that it would cut production by 40 percent in September.
The decision was partly due to a “lack of parts as a result of the spread of Covid-19 in Southeast Asia,” said Toyota.
At the same time, the German chip manufacturer Infineon announced that it would increase the cost of chips in view of the difficulties in the supply chain.
“We have seen for ourselves how the final production costs have risen massively,” said Infineon boss Reinhard Ploss on Friday the business magazine “WirtschaftWoche”.
“Of course we have to pass these costs on,” said Ploss.