© Reuters. VW’s SEAT presents 2020 leads to Martorell, close to Barcelona
(Reuters) – Volkswagen AG (OTC:) has warned managers to organize for a much bigger manufacturing hit within the second quarter than the primary attributable to a worldwide chip scarcity, the Monetary Instances reported on Saturday.
“We’re being informed from the suppliers and inside the Volkswagen (DE:) Group that we have to face appreciable challenges within the second quarter, in all probability tougher than the primary quarter,” Wayne Griffiths, president of Volkswagen’s Spanish model Seat, informed the FT. https://on.ft.com/3gBddOE
Griffiths referred to as the scarcity the “greatest problem” the corporate faces in the intervening time.
He mentioned manufacturing at Seat’s Martorell plant exterior Barcelona was at the moment “hand to mouth”, with the model deciding what automobiles to construct solely after it receives chips from suppliers, the report mentioned.
Volkswagen has mentioned it expects chip provide to stay tight within the coming months, including it couldn’t present visibility for the complete yr.
The corporate has been unable to construct 100,000 automobiles as a result of scarcity, CEO Herbert Diess mentioned final month, including the group wouldn’t be capable to make up for the shortfall in 2021.
“The state of affairs has been exacerbated i.e. by the blizzards which have occurred in Texas, as the massive chip producers based mostly there needed to cease or scale back their manufacturing. For that motive additional changes to manufacturing can’t be dominated out”, Volkswagen mentioned in an emailed assertion on Saturday.
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