VW chip shortage: “We are certainly in crisis”

Frankfurt- Volkswagen Boss Herbert Diess said he was the top in Europe carManufacturers added that they are in a “crisis” over the ongoing shortage of automotive chips that are in great need, and the impact of the shortage will increase, damaging profits in the second quarter.

The bottleneck “substantially strains revenue” in the quarter to June, said Dies, following the results of bumpers in the first three months of the year, with operating profit more than five-fold. It was.

The shortage is caused by various factors, Including car The coronavirus crisis and the fire at Renesas Electronics, a leading automotive chip maker, helped the industry recover faster than expected.

The snowstorm in Texas earlier this year exacerbated the situation and hit local production of chip makers such as Samsung Electronics, Infineon and NXP Semiconductors.

“We do everything to offset a significant amount of what is lost car“The US and Japanese incidents will definitely hurt us later this year,” Dies told journalists.

Dís said that while the problem reduced production by about 100,000 people cars There was much more in the first quarter.

“We are still commanding people in the supply chain to recoup our expected second-quarter losses,” he said.

Volkswagen’s share price fell 2.8%.

To secure long-term supply, the German group is in direct discussion with chip makers such as NXP Semiconductors and Infineon, and foundries such as Taiwan Semiconductors Manufacturing, according to Dís.

“Sure, we are in a crisis,” he said.

Despite the crisis, Volkswagen raised its operating profit target this year in response to strong demand Audi And Porsche In the first quarter.

We now expect an operating margin of 5.5-7% from our previous forecast of 5.0-6.5%.

According to Volkswagen, shipments of both Porsche and Audi increased by about three years year-on-year in the first quarter.Sale of Electric car It has more than doubled to 133,300 units.

Increasing demand for high profit margins cars echoed similar comments from General Motors, Daimler, Ford And Stellantis.

The second largest Volkswagen in the world carEarlier this year, car dealers helped investors by providing details of their electric vehicle strategy, including raising sales targets and planning to build six battery plants in Europe.

Volkswagen’s operating profit was € 4.8 billion (5.8 billion euros) from January to March, supported by cost savings and increased sales, compared to € 900 million in the year-ago quarter, which was hit by the COVID-19 pandemic. It was a dollar).

VW chip shortage: “We are certainly in crisis”

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