Car maker Volkswagen AG warned managers to prepare to ‘deal’ with production operations being affected by the global shortage of chips.
In an interview with the Financial Times, Mr. Wayne Griffiths, President of Seat brand in Spain, Volkswagen said that the unit has received notifications from suppliers as well as from Volkswagen Group about significant challenges in the quarter. II and possibly even more difficult than the first quarter.
The shortage of chips is the biggest challenge that this business is facing, Griffiths said. Volkswagen logo at a dealership of this company in Hamm, Germany. (Photo: AFP / VNA) Seat’s Martorell factory, located on the outskirts of Barcelona, only makes models that receive chips from suppliers, Griffiths said. Volkswagen expects chip supplies to remain tight in the coming months. Last month, Volkswagen Chief Executive Officer Herbert Diess said it was unable to produce 100,000 cars due to a shortage of chips and it would be difficult to make up for the shortage in 2021. According to Volkswagen, the shortage of chips is exacerbated by a snowstorm in Texas (USA), and major chip manufacturers based in the region have to stop production or reduce production. Therefore, this company cannot rule out the possibility of further adjustments to production activities.
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