One More Carmaker Confirms the Wrath of the Chip Shortage, the War Making It Even Worse

Seat says it has adjusted the production at some plants 8 photos
Photo: Seat
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After so many global carmakers, it’s now the turn of Volkswagen’s Seat to acknowledge the disruptions caused by the chip shortage while also confirming that production has slowed down at certain facilities.
As if the lack of chips wasn’t already a problem that caused nightmares to car manufacturers across the globe, the war in Ukraine makes the struggle twice more awful, as it led to shortages of other components.

Seat’s CEO Wayne Griffiths confirmed both continue to be huge problems for the manufacturing operations of the company, though he anticipates the invasion of Ukraine to cause additional disruptions towards the end of the year unless the war comes to an end.

Due to the shortages of chips and other parts, Seat has already adjusted or even suspended the production at some of its plants.

The Martorell plant in Spain, which builds the Ibiza, the Leon, and the Cupra Formentor is no longer running at full speed due to the lack of components. Griffiths explained the Leon and the Formentor plug-in hybrids are mostly affected by the disruptions.

The manufacturing of the Cupra Born in Germany has also been suspended, and so has the production of the Tarraco. In both cases, the war in Ukraine has been cited as the reason for the adjustments.

Seat obviously isn’t the only company struggling with this painful mix made of the semiconductor crisis and the impact of the war. Earlier this month, Ford too announced a series of changes for its plants in Europe, with the same two causes invoked by the company officials.

While many expect the chip inventory to improve towards the end of the year, it’s hard to anticipate when the military invasion of Ukraine could be over. Seat’s CEO believes the component crisis caused by the war could become an even much bigger problem than the constrained chip inventory in the second half of the year, and this means the production of cars could continue to run at a slower pace for a longer period of time.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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