Your VW may be equipped to linger

Your VW may be equipped to linger

FineAuto

The German concern Volkswagen Group intends to significantly reduce car production in April – June 2021. Reason: problems with the supply of components, primarily microcircuits. This is reported by the Financial Times with reference to the president of Seat (part of the Volkswagen Group) Wayne Griffiths.

Recall that difficulties with electronic chips have been going on since the end of 2020.

“Suppliers and Volkswagen Group representatives tell us that we will have to face significant challenges in the second quarter, possibly more difficult than in the first,” said Griffiths.

In March, Volkswagen CEO Herbert Diess noted that production will drop by 100,000 vehicles in January-March 2021 due to a shortage of semiconductors. According to him, the group will not be able to fill the deficit until the end of the year.

The German company said that the situation was aggravated due to abnormal frosts in Texas, which were recorded in February 2021. Due to bad weather, large chip manufacturers based there were forced to stop or reduce production of parts.

Several factors contributed to the shortage of semiconductor microcircuits: a) an unexpectedly rapid recovery in demand for these components from automakers after the end of the “coronavirus crisis”, b) an increase in sales of computers and laptops due to the massive transition of people to remote work, c) a large fire at Asahi Kasei Microdevices, one of the largest chip manufacturers, in October 2020.

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