VW in “crisis mode” due to lack of chips | Automotive Industry News

Volkswagen chief Herbert Diess said automakers are in a “crisis” due to the ongoing shortage of car chips that are in great need, and the impact of the shortage has increased in the second quarter. He added that it would be profitable.

The bottleneck “substantially strains revenue” in the quarter to June, said Death, following the results of bumpers in the first three months of the year, when operating profit increased more than five-fold. Reuters reported.

“We will do everything to offset a significant amount of cars lost later this year,” Dies told Reuters. “But the incidents in the United States (storm turmoil) and Japan (Renesas fire) will definitely hurt us.”

According to Dís, the issue reduced production by about 100,000 units in the first quarter, but plans to increase further in the future.

“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 was in direct talk with chip makers such as NXP Semiconductors and Infineon, and foundries such as Taiwan Semiconductors Manufacturing, Dís told Reuters.

“Sure, we are in a crisis,” he said.

Despite the crisis, Volkswagen raised its operating profit target this year due to strong demand for Audi and Porsche in the first quarter.

According to Reuters, the current operating margin is expected to rise from the previous forecast of 5.0-6.5% to 5.5-7%.

According to Volkswagen, shipments of both Porsche and Audi increased by about three years year-on-year in the first quarter. Sales of electric vehicles have more than doubled to 133,300 units.

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

VW in “crisis mode” due to lack of chips | Automotive Industry News

Source link VW in “crisis mode” due to lack of chips | Automotive Industry News

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