Photo: autoevolution
The number of carmakers impacted by the global chip shortage is growing every day. This time, it’s Volkswagen’s turn to complain about the production struggles caused by the lack of semiconductors.
Speaking with German newspaper Handelsblatt, Volkswagen board member Murat Aksel explained that the company is now going through the toughest six weeks since the beginning of the chip shortage, with over 100,000 cars being impacted.
Aksel explains the semiconductor crisis has reached the worst point, suggesting that production should improve in the third quarter of the year, though it’d still take a while until everything returns to normal.
Some 10 percent of the global demand for chips can’t be filled because foundries can’t deal with so many orders, so in theory, the industry needs increased production capacity either by upgrading the existing lines or with the help of new companies expanding into semiconductor manufacturing.
Aksel says Volkswagen is already planning ahead as the company wants to build larger chip inventory to make sure its production wouldn’t be affected in the long term. But on the other hand, Volkswagen obviously isn’t the only company that’s planning to do this.
Several other carmakers have been struggling with the lack of chips, many of them eventually suspending operations at some facilities for several days as they were waiting for suppliers to deliver semiconductors.
Earlier this week, General Motors announced that some 2021 models sold by the brands it owns would come without automatic start-stop to reduce the number of chips it uses on the cars. The company is offering a $50 price cut for these models, though right now, it’s still not known when it plans to reintroduce the technology across the entire lineup.
Industry analysts expect the semiconductor shortage to continue into 2022, even despite other big names, such as Intel, expanding manufacturing specifically for car chips.
Aksel explains the semiconductor crisis has reached the worst point, suggesting that production should improve in the third quarter of the year, though it’d still take a while until everything returns to normal.
Some 10 percent of the global demand for chips can’t be filled because foundries can’t deal with so many orders, so in theory, the industry needs increased production capacity either by upgrading the existing lines or with the help of new companies expanding into semiconductor manufacturing.
Aksel says Volkswagen is already planning ahead as the company wants to build larger chip inventory to make sure its production wouldn’t be affected in the long term. But on the other hand, Volkswagen obviously isn’t the only company that’s planning to do this.
Several other carmakers have been struggling with the lack of chips, many of them eventually suspending operations at some facilities for several days as they were waiting for suppliers to deliver semiconductors.
Earlier this week, General Motors announced that some 2021 models sold by the brands it owns would come without automatic start-stop to reduce the number of chips it uses on the cars. The company is offering a $50 price cut for these models, though right now, it’s still not known when it plans to reintroduce the technology across the entire lineup.
Industry analysts expect the semiconductor shortage to continue into 2022, even despite other big names, such as Intel, expanding manufacturing specifically for car chips.
Google News