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Volkswagen warns of worsening production due to chip shortage: FT

Apr 24 (Reuters) – Volkswagen AG has warned managers to prepare for production shocks in the second quarter greater than the first due to a global chip shortage, the Financial Times reported on Saturday.

“Suppliers and within the Volkswagen Group tell us that we must face considerable challenges in the second quarter, probably tougher than the first quarter,” Wayne Griffiths, president of Volkswagen’s Spanish brand Seat, told the FT.

Griffiths added that the shortage was the “biggest challenge” facing the company right now.

He said production at Seat’s Martorell plant on the outskirts of Barcelona was currently “up to date,” and the brand decides which cars to make only after receiving chips from suppliers, according to the report.

Volkswagen has said it expects chip supplies to remain tight in the coming months, adding that it could not provide full-year forecasts.

The company has been unable to make 100,000 cars because of the shortage, Chief Executive Herbert Diess said last month, adding that the group would not be able to make up for it in 2021.

Volkswagen did not immediately respond to a request for comment from Reuters.

(Reported by Juby Babu in Bengaluru; edited by Jason Neely, edited in Spanish by Gabriela Donoso)

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