Volkswagen AG (XETRA:VOW), Europe’s largest car maker, warned top managers to brace for a bigger production hit in the second quarter because of the worsening global chip shortage.
“We are being told from the suppliers and within the Volkswagen Group that we need to face considerable challenges in the second quarter, probably more challenging than the first quarter,” Wayne Griffiths, president of VW’s Seat brand, told the Financial Times.
The carmaker previously said it expected output to fall by 100,000 vehicles in the first quarter of 2021 due to semiconductor shortages and that it would be unable to make up the shortfall this year.
Many of the world’s largest automakers have been forced to reduce production in recent months because of the lack of semiconductors. Supply issues have hampered chip output and vehicle makers are also seen as less lucrative customers than the manufacturers of smart phones and video consoles.