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



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


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

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

Griffiths known as the scarcity the “greatest problem” the corporate faces in the intervening time.

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

Volkswagen has stated 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 vehicles as a result of scarcity, CEO Herbert Diess stated final month, including the group wouldn’t be capable of make up for the shortfall in 2021.

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

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