Volkswagen not expecting chip shortage to end in 2022

Volkwagen says that the chip shortage could lighten towards the second half but would not be solved completely in 2022


The coronavirus pandemic might have slowed down due to the worldwide distribution of vaccines. But the situation has left a few adverse effects on some of the sectors including the auto and electronics manufacturers. The closures during the pandemic have left a world-wide shortage of semi-conductors that are used in smartphones, electronic gadgets and auto sector. While many industries have hopes that the shortage could be solved towards the end of 2022, auto giant Volkswagen has opined that it does not expect the shortage to end this year.

However, the company has said that the situation could ease during the second half of the year and that the situation could continue till at least beyond the second half of 2022. Murat Aksel, the head of procurement on the Volkswagen board, during an interview with Automobilwoche said that there were structural issues to deal with and the demand would continue to increase in the auto sector. Car manufacturers across the globe are facing shortage of semiconductors that was caused by the COVID-19 supply chain disturbances.

Aksel has also said that under the current circumstances, they are not focusing on claims of damages from the suppliers who are behind the chip deliveries, but are working closely with them for better availability. Talking about better predictions, the procurement head added that the situation could improve in 2023 when more companies would increase their production capacity.

A number of car manufacturers across the globe are facing shortage of semiconductors due to which they are not able to handle the demand from the customers. As a result, the companies are not able to rollout enough cars as per the customer demand and are facing losses. Many auto companies reported losses and also are facing a slow-down in demand due to the inflated prices of the cars induced by supply chain issues. Apart from the auto sector, the mobile phone manufacturing industry is also facing a shortage of semi-conductors.

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