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Volkswagen warns of worsening output hit from chip scarcity -FT By Reuters 


© Reuters. VW’s SEAT presents 2020 ends in Martorell, close to Barcelona


(Reuters) – Volkswagen AG (OTC:) has warned managers to arrange for a much bigger manufacturing hit within the second quarter than the primary as a result of a worldwide chip scarcity, the Monetary Instances reported on Saturday.

“We’re being advised from the suppliers and throughout the Volkswagen (DE:) Group that we have to face appreciable challenges within the second quarter, most likely more difficult than the primary quarter,” Wayne Griffiths, president of Volkswagen’s Spanish model Seat, advised the FT.

Griffiths referred to as the scarcity the “greatest problem” the corporate faces in the meanwhile.

He mentioned manufacturing at Seat’s Martorell plant outdoors Barcelona was at the moment “hand to mouth”, with the model deciding what automobiles to construct solely after it receives chips from suppliers, the report mentioned.

Volkswagen has mentioned it expects chip provide to stay tight within the coming months, including it couldn’t present visibility for the total 12 months.

The corporate has been unable to construct 100,000 automobiles because of the scarcity, CEO Herbert Diess mentioned final month, including the group wouldn’t be capable to make up for the shortfall in 2021.

“The state of affairs has been exacerbated i.e. by the blizzards which have occurred in Texas, as the big chip producers based mostly there needed to cease or cut back their manufacturing. For that cause additional changes to manufacturing can’t be dominated out”, Volkswagen mentioned in an emailed assertion on Saturday.

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