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.
By : Reuters
| Updated on: 25 Apr 2021, 09:10 AM
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 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

Similar Cars

Find More Cars
Volkswagen Polo (HT Auto photo)
Volkswagen Polo
999 cc | Petrol | Manual | 17.74 kmpl
₹5.83 - 10 Lakhs**Ex-showroom price
Volkswagen Vento (HT Auto photo)
Volkswagen Vento
999 cc | Petrol | Manual | 17.69 kmpl
₹10 - 14.1 Lakhs**Ex-showroom price
Volkswagen Taigun (HT Auto photo)
Volkswagen Taigun
999 cc | Petrol | Manual | 18.1 kmpl
₹10.49 - 17.5 Lakhs**Ex-showroom price
Volkswagen Virtus (HT Auto photo)
Volkswagen Virtus
999 cc | Petrol | Manual | 19.4 kmpl
₹11.21 - 17.91 Lakh**Ex-showroom price
Volkswagen T-roc (HT Auto photo)
Volkswagen T-roc
1498 cc | Petrol | Automatic (Dual Clutch) | 17.85 kmpl
₹21.35 Lakhs**Ex-showroom price
Volkswagen Tiguan (HT Auto photo)
Volkswagen Tiguan
1984 cc | Petrol | Automatic | 12.65 kmpl
₹32.79 Lakhs**Ex-showroom price

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.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

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.

First Published Date: 25 Apr 2021, 09:10 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city