Volkswagen's core shortage problem in the second quarter will be more serious than in the first quarter

According to foreign media reports, on April 24, the person in charge of SEAT revealed that due to the global chip shortage, Volkswagen has issued a warning that the production loss in the second quarter will be greater than that in the first quarter, and managers must be prepared for this. .

(Image source: Volkswagen)

Siyat President Wayne Griffiths said: 'According to the supplier and Volkswagen Group's notification, we will face considerable (chip supply) challenges in the second quarter, which may be more difficult than the first quarter.' This warning raises the possibility of more losses for the public. The company predicted last year that due to a core shortage of 100,000 vehicles in the first quarter of 2021, it also stated that the company would not be able to make up for these lost production later this year.

Griffiths said that the shortage of chips is the “biggest challenge” currently facing SEAT. The current output of SEAT's Martorell factory can only barely maintain operations, and the brand will make a decision after receiving the chip from the supplier. Which cars are produced. 'This year, the essence of the problem will be flexibility. When we receive the chips, we must work hard to produce them.' Once SEAT receives the chips, the company can decide which models to produce, including hybrid cars or traditional cars.

At this time, automakers are all relying on the recovery of demand after the epidemic. The chip crisis started last year, but intensified under the influence of a snowstorm in Texas and a fire at the Renesas chip factory in Japan, and it has continued to the present.

The entire automotive industry has felt the cost of the deepening of the chip shortage crisis, and it is expected that the impact of supply shortages on production will continue into the second half of the year. So far, the Volkswagen Group has announced the suspension of production at several factories. The latest news shows that last week some production at the Slovak plant was interrupted, and the plant produced many of the largest SUVs. Last week, Ford closed 12 plants in North America and Europe, and some plants stopped production for several months. Last week, Renault completely interrupted its production plan, indicating that the supply chain had too many uncertainties; at the same time, Daimler reduced the working hours of more than 18,000 employees in Germany to adapt to low production levels. In the first few months of this year, automakers have already lost hundreds of thousands of vehicles in production. Most major automakers have announced the suspension of production. Analysts expect this to cause billions of dollars in losses to the auto industry.