Monday, November 28, 2022
News Chip Shortage at Lowest Point, VW Exec Expects Improvements for Q3

Chip Shortage at Lowest Point, VW Exec Expects Improvements for Q3

Chip pressures may start to ease in Q3

  • Millions of units of lost production over shortage of key components

  • Volkswagen examining supply chain to help prevent recurrence


For automakers scrambling to find the parts they need to build their newest vehicles, the pressures could start to ease. Which might not be all that much comfort for procurement departments that are currently in the worst part of the shortage, at least according to Volkswagen.

“At the moment we have reached the lowest point. We are facing the toughest six weeks,” Murat Aksel, purchasing director for Volkswagen Group, told German newspaper Handelsblatt in an interview.

After the six weeks? The situation should improve. Aksel said that in the third quarter of this year “the pipeline should be better filled.”

Still, he said, a shortfall of around 10 percent of needed semiconductors would continue as there isn’t enough global production to meet demand. “It takes up to two years before new production capacities can be built up,” said Aksel.

The plan for Volkswagen is to stockpile more chips going forward. “Security of supply is one of our most important tasks. Because for me the principle applies: no component, no car, no money,” said Aksel. The automaker is also looking at the supply risk of all of its current components.

Volkswagen Group has missed out on the production of more than 100,000 cars in 2021 over the semiconductor shortage. That figure puts the company low on the list of those affected by the shortage, which experts have estimated will reach well into the millions this year.

 

 

Trending Now

Hankook Launches iON Winter Tires for EVs

Hankook’s iON tire line is specifically designed for EVs. The iON winter tires arrive next spring. Electric vehicles are posing serious headaches for both...

Tesla Now Has 1.5 Million Reservations for the Cybertruck

The controversial truck reportedly received 250,000 reservations within a week of its launch in 2019. The company now says production will begin in...

BMW 3.0 CSL Celebrates 50 Years of M With a Carbon Body and 554 HP

Hand-made carbon fiber highlights CSL Just 50 of these super-Ms will be built BMW has just launched the most hardcore offering in its celebration...

Is this Vision Study Model the next Mazda MX-5?

This Mazda Vision Study really looks like the next generation of the popular roadster The butterfly doors probably won't make it to production ...

New Kia Logo Generates 30,000 Monthly Confused Enquiries

People are searching for “KN” car brand. The logo was updated almost two years ago. This is not a case of mistaken identity, it’s...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.