Volkswagen Warns Chip Shortage to Curb Output in Coming Months

Volkswagen AG’s main car brand expects the global chip shortage to curb production of vehicles in the coming months, but the output of electric cars currently isn’t affected by supply bottlenecks.

The shortage in semiconductor components could start to ease in the second half of the year, VW brand chief Ralf Brandstaetter told DPA in an interview published on Saturday. The company plans to make up for lost output as far as possible in the course of the year.

Europe’s largest automaker warned in December that the worldwide shortage would disrupt vehicle production, estimating that output of more than 100,000 cars could be at risk. The bottlenecks that affect the entire industry were exacerbated by a fire at a Renesas Electronics Corp. chip factory in Japan and the winter storm in Texas this year.

VW will reduce 4,000 administrative jobs and add 2,000 positions for digital operations, Brandstaetter said. The company also continues to slash manufacturing complexity to lower costs and restrict external hiring as far as possible, he said.

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