VW CEO Says Automaker Will Continue To Make Output Cuts Due To Chip Shortage
Volkswagen Group chief executive Herbert Diess says that the car manufacturer will have to continue making output cuts at its Wolfsburg factory in response to the ongoing semiconductor shortage.
While recently speaking with workers at the site, Diess said the parts shortage at the company’s German headquarters continues to pose a challenge, although he noted that VW has made progress in managing bottlenecks.
“Wolfsburg is particularly hard hit by the semiconductor situation,” Diess said. “Capacity adjustments are therefore necessary, also in the medium term.”
Diess told Wolfsburg staff that VW has introduced an early-warning system on chips and that engineers have also identified 150 “technology alternatives to replace missing semiconductors,” Bloomberg reports. “We’re seeing opportunities to further increase production, particularly in the second half of the year,” Diess added.