Volkswagen has warned top managers to prepare for mass production in the second tier than the first due to the global chip shortage, according to the company’s Seat brand chief.
“We are told by suppliers and from Volkswagen Group that we need to face more challenges in the second quarter, perhaps more difficult than in the first quarter,” Wayne Griffiths, President of VW’s Spanish brand, told the Financial Times.
The warning brings with it the potential for loss to the world’s second-largest car manufacturer, who said last year it expected production to drop by 100,000 cars in the first half of 2021 due to a shortage of semiconductor.
VW had previously warned that it did not have the capacity to recover what was lost at the end of the year.
Griffiths said the shortfall was the “biggest problem” the company is currently facing.
The magnitude of these problems is reflected in the overall market, with a decrease expected to occur until the second half of the year.
Last week Ford closed 12 locations in North America and Europe, some for months, while this week’s Jaguar Land Rover closed two UK factories.
Renault last week suspended all manufacturing instructions, saying there was a lot of uncertainty in its company, as Daimler cut more than 18,000 hours in Germany to help with the downfall.
Cararm manufacturers have already lost hundreds of thousands of cars in the first few months of this year, with many manufacturers announcing that they will stop the company from producing what they hope will cost billions of dollars a year.
The crisis, which began last year but was exacerbated by a Texas hurricane and a fire at Japan’s Renesas factory, comes as manufacturers at the bank resume search after the epidemic.
Griffiths, who participated in last October, said production at Seat’s Martorell outside Barcelona is currently “cohesive”, with the brand selecting cars to build when it receives chips from suppliers.
“The name of the game this year will be flexible,” he said. Once the company has received its chips, it is able to select the types that it can build, simply moving between hybrid vehicles and traditional vehicles based on the equipment it receives.
“We have to work hard to build it when we arrive [chips] are available, ”he added.
Across the VW team, the company has announced a breakthrough in a number of companies, including last week suspending production from its plant in Slovakia, which manufactures most of the company’s vehicles.