Volkswagen warns of worsening output hit from chip shortage

  • Volkswagen has said it expects chip supply to remain tight in the coming months, adding it could not provide visibility for the full year.
Volkswagen has been unable to build 100,000 cars due to the shortage.
Volkswagen has been unable to build 100,000 cars due to the shortage.

Volkswagen AG has warned managers to prepare for a bigger production hit in the second quarter than the first due to a global chip shortage, the Financial Times reported on Saturday.

"We are being told from the suppliers and within the Volkswagen Group that we need to face considerable challenges in the second quarter, probably more challenging than the first quarter," Wayne Griffiths, president of Volkswagen's Spanish brand Seat, told the FT. https://on.ft.com/3gBddOE

Also check these Vehicles

Find more Cars
Volkswagen Polo 2024 (HT Auto photo)
UPCOMING
Engine Icon999 cc FuelType IconPetrol
₹ 8 Lakhs
Alert Me When Launched
Volkswagen Tiguan 2025 (HT Auto photo)
UPCOMING
Engine Icon1984 cc FuelType IconPetrol
₹ 37 Lakhs
Alert Me When Launched
Volkswagen Taigun (HT Auto photo)
Engine Icon1498.0 cc FuelType IconPetrol
₹ 10.49 - 17.50 Lakhs
Compare
View Offers
Volkswagen Virtus (HT Auto photo)
Engine Icon999.0 cc FuelType IconPetrol
₹ 11.21 - 17.91 Lakh
Compare
View Offers
Volkswagen Tiguan (HT Auto photo)
Engine Icon1984.0 cc FuelType IconPetrol
₹ 32.79 Lakhs
Compare
View Offers
Volkswagen Id.7 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77 kWh Range Icon621 Km
₹ 70 Lakhs
Alert Me When Launched

Griffiths called the shortage the "biggest challenge" the company faces at the moment.

He said production at Seat's Martorell plant outside Barcelona was currently "hand to mouth", with the brand deciding what cars to build only after it receives chips from suppliers, the report said.

Volkswagen has said it expects chip supply to remain tight in the coming months, adding it could not provide visibility for the full year.

The company has been unable to build 100,000 cars due to the shortage, CEO Herbert Diess said last month, adding the group would not be able to make up for the shortfall in 2021.

"The situation has been exacerbated i.e. by the blizzards that have occurred in Texas, as the large chip manufacturers based there had to stop or reduce their production. For that reason further adjustments to production cannot be ruled out", Volkswagen said in an emailed statement on Saturday.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 25 Apr 2021, 09:10 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.