Volkswagen to benefit from easing chip crisis, hopes

Volkswagen sees a strong second half of 2022 and expects progress in catching up with rival Tesla as easing chip shortages have started to offset supply chain bottlenecks and rising costs, said the automaker's CEO Herbert Diess on Tuesday. He also said that Volkswagen is earning more than ever. The Volkswagen CEO also said that the automaker is aiming to ramp up the production volume of electric vehicles to increase sales in its key markets such as Germany and China. The easing supply chain crisis and increased availability of semiconductors will aid this growth, claimed Diess.

This would allow Volkswagen to narrow its gap with Tesla, which is currently the leader in the global electric car market. Volkswagen aims to be the market leader in the electric vehicle segment by 2025. The comment from Volkswagen's chief comes at a time when the US electric car major is burning cash on large investments and facing several headwinds in the US and overseas.

Speaking about Volkswagen's rivalry with Tesla, the VW boss further said that the US EV major has to ramp up two highly complex factories in Austin and Gruenheide at the same time - as well as expand production in Shanghai. He further said that it would cost a huge investment for Elon Musk.

Volkswagen has been aiming to grab the pole position in the global electric car market. The automaker is launching a range of products with electric powertrain under the different brands the auto major owns.