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Volkswagen Says Chip Shortage WILL PROBABLY Extend to 2023

German vehicle manufacturerVolkswagen has said it generally does not anticipate chip shortages ending in 2023 and is instead gearing up for a fresh normal of supply-chain disruptions.

Murat Aksel, head of procurement on the Volkswagen board, gave the bleak outlook within an interview with the German weekly Automobilwoche.

Aksel said that as the situation has improved somewhat, and investments for new capacity are actually on the right track, there likely it’s still a structural shortfall in semiconductors up to 2023.

Aksel noted that its a structural issue that cant be solved so quickly and that it will require years to develop new capacities.

As the company anticipates chip shortages to increase beyond next year, the way to obtain wire harnesses is stable again,Aksel said.

Thewire harnesses, which are created in Ukraine, have been an issue since Russias invasion of Ukraine inFebruary. However,Volkswagen stood by its suppliers in Ukraine, while simultaneously establishing backup locations far away,Aksel said.

Aksel warned, however, that when the problem in Ukraine were to deteriorate further, the backup locations could be had a need to produce them.

Further supply-chain issues may still lie ahead, he added, that will create a far more challenging environment.

What weve observed in the supply chains in the last 2 yrs is this is actually the new normal, he said. Sufficient reason for the brand new geopolitical issues, its becoming a lot more complex and challenging.

For this reason,Volkswagen is investing heavily in detecting such problems in early stages,Aksel said.

The global chip shortage, initially prompted by increased demandduring the COVID-19 pandemic and supply-chain issues, has been further exacerbated by skyrocketing inflation. The shortage also led to multiple companiescutting back on production in the usa and elsewhere.

Back March,Cox Automotive lowered its full-year new-vehiclesales forecast, from 16.0 million to 15.3 million.

Meanwhile, the shortage costthe European automotive industry around 100 billion ($99 billion) in 202122, insurer Allianz said in astudypublished on Sept. 13.

The global automotive chip shortage has generated a shortfall of 18 million vehicles, the analysis states. The problem has been comparatively worse in Europe, where, unlike in China or THE UNITED STATES, vehicle production fell to an unprecedented low of 13 million vehicles in 2021.

Within an interview with Reuters on Sept. 19, Martin Daum, Daimler Truckschief executive, said the automobile makers deliveries may have beenhigher by way of a five-digit figure in 2021 and 2022 if it werent for such supply-chain issues.

However,Daum said that demand in the truck market have not declined and thatorder books were filling fast, meaning the business could pass higher costs to customers, and can recover margins lost in the pandemic by 79 percent.

The business sold 120,961 units in the next quarter of 2022, up 4 percent from exactly the same period this past year.

Reuters contributed to the report.

Katabella Roberts

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Katabella Roberts is really a news writer for The Epoch Times, focusing primarily on america, world, and business news.

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