Volkswagen does not see chip shortage ending in 2023: Report
- Volkswagen is among the most impacted car brands by the chip shortage.
German auto giant Volkswagen no longer foresees the chip crisis ending in 2023. Keeping that in mind, the automaker is preparing for the new normal of supply chain disruptions, said a key official, reports German weekly publication Automobilwoche.
Volkswagen board's head of procurement, Murat Aksel has said that the automaker is preparing to adapt to the new normal. The carmaker has accepted that the chip crisis will not be over even in the next year. This understanding prompted Volkswagen to think and act differently compared to its previous strategy regarding the supply chain.
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Earlier, in late June this year, Volkswagen forecasted a robust second half of 2022 on the back of the easing chip crisis. Former Volkswagen CEO Herbert Diess said that an easing chip crisis and improving supply chain disruption would result in better earnings for the automaker. However, the latest development comes portraying a different scenario.
The chip crisis remains a global phenomenon for the auto industry around the world. Not only Volkswagen but several other car brands too have been impacted by the chip shortages, which started two years ago during the peak of the pandemic. Being a multi-brand auto manufacturer group, Volkswagen is among the severely impacted carmakers due to the crisis. As the world entered into lockdown, the chip manufacturers started shifting their focus on consumer products, electronic products that were witnessing increasing demand from the consumers.
Later, when the auto industry restarted its operation, chip manufacturers failed to cater to the ramped-up demand. This resulted in massive disruption, even leading to factory shutdowns, and significantly increased the waiting period for vehicle buyers. Russia's invasion of Ukraine further deteriorated the situation for the automakers with the non-availability of crucial components.