Sunday, June 23, 2024
NewsThe Supply Chain Crisis Could be Ending Soon, according to Herbert Diess

The Supply Chain Crisis Could be Ending Soon, according to Herbert Diess

Volkswagen's CEO thinks the worst of the supply chain crisis is behind us.

Since the beginning of the pandemic, the automotive industry, like many other sectors of the global economy, has had to deal with supply disruptions that have delayed and disrupted the production of new vehicles.

Fortunately, according to Volkswagen Group CEO Herbert Diess, in an interview during the Davos Economic Forum, he sees a “clear improvement” in the supply of semiconductors and expects global production of the group’s various brands to return to normal by the end of the year.

The supply problems related to the conflict in Ukraine are also decreasing, according to the principal concerned. It should be remembered that the production of cable harnesses and other components used in the brand’s vehicles was temporarily halted due to the Russian invasion of Ukraine.

There was also talk of adding the Scout brand to the Volkswagen dealer network in North America, the division that would be geared toward a more “adventurous” customer base. Volkswagen’s North American wing will also have to answer many questions from American and Canadian dealerships, who were taken by surprise when the official announcement was made that the American brand would be returning to the Wolfsburg giant’s umbrella.

According to Mr. Diess, Volkswagen intends to choose a new production site for the assembly of the first two models of this new Scout division – a pickup truck and an SUV – in the United States. The Scout offensive is not the only one planned by Volkswagen, which intends to invest no less than $7.5 billion over the next five years in the U.S. market, including commercial vehicles and even the addition of an electric pickup truck.

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