Get App
Download App Scanner
Scan to Download
Advertisement
This Article is From May 03, 2021

Volkswagen Warns Chip Shortage to Curb Output in Coming Months

Volkswagen Warns Chip Shortage to Curb Output in Coming Months

Volkswagen AG's main car brand expects the global chip shortage to curb production of vehicles in the coming months, but the output of electric cars currently isn't affected by supply bottlenecks.

The shortage in semiconductor components could start to ease in the second half of the year, VW brand chief Ralf Brandstaetter told DPA in an interview published on Saturday. The company plans to make up for lost output as far as possible in the course of the year.

Europe's largest automaker warned in December that the worldwide shortage would disrupt vehicle production, estimating that output of more than 100,000 cars could be at risk. The bottlenecks that affect the entire industry were exacerbated by a fire at a Renesas Electronics Corp. chip factory in Japan and the winter storm in Texas this year.

VW will reduce 4,000 administrative jobs and add 2,000 positions for digital operations, Brandstaetter said. The company also continues to slash manufacturing complexity to lower costs and restrict external hiring as far as possible, he said.

©2021 Bloomberg L.P.

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.

Newsletters

Update Email
to get newsletters straight to your inbox
⚠️ Add your Email ID to receive Newsletters
Note: You will be signed up automatically after adding email

News for You

Set as Trusted Source
on Google Search
Add NDTV Profit As Google Preferred Source
Listen to the latest songs, only on JioSaavn.com