https://www.bloombergquint.com/business/volkswagen-cuts-output-at-biggest-plant-as-chip-shortage-bites
Volkswagen Cuts Output at Biggest Plant as Chip Shortage Bites
Aug 20 2021, 4:10 PM
(Bloomberg) -- Volkswagen AG plants are set for a bumpy restart after the
traditional summer break as the car industry remains in the grip of a chip
shortage that most recently engulfed holdout Toyota Motor Corp.
VW’s Wolfsburg plant, the world’s biggest employing some 60,000 people, will
restart with only one shift next week Monday through Friday, Europe’s biggest
automaker said. Audi, the group’s biggest profit contributor, will extend the
summer break by one week at its two factories in Germany as semiconductor
supply remains “volatile and tense.”
Carmakers’ recent warnings of rocky months ahead are proving prescient after
Covid-19 outbreaks in Southeast Asia forced restrictions at chip-processing
plants. VW last month flagged “really constrained” output during the third
quarter, while BMW AG predicted ongoing uncertainty.
Toyota will suspend output at 14 plants across Japan for various lengths of
time through next month, succumbing to supply issues it had been navigating
better than other manufacturers thanks to stockpiles of chips and other key
components. The impact will be most severe in September, with Toyota slashing
its production plan by 40%.
Read More: Toyota Cuts Show Covid Ravaging Even Best Supply Planners
While carmakers have been forced to dial back sales expectations, higher
vehicle prices and a focus on major money makers have helped cushion the blow.
According to research by Susquehanna Financial Group, the amount of time it’s
taking for chip-starved companies to get orders filled has stretched to more
than 20 weeks, indicating the shortages are getting worse.
Mit freundlichen Grüßen/Kind regards,
Robert German
Tesla referral code: Robert85963
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