Volkswagen Facing ‘Massive’ Shortage Of Electronic Parts: Report

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  • The semiconductor makers had reassigned production to consumer electronics during the worst of the COVID-19 slowdown in sales
  • As per the report, the shortage will affect production at Chinese, North American and European plants during the first quarter of 2021, the company said

As per a report by Associated Press, Volkswagen said that it was facing production slowdowns due to a “massive” supply bottleneck caused by a shortage of semiconductor components for car electronics. It added that the semiconductor makers had reassigned production to consumer electronics during the worst of the COVID-19 slowdown in sales. iIt said in a statement that automobile markets have now recovered significantly and the industry, including the Volkswagen Group, faces a shortage of the electronic components required.

Affect production at Chinese, North American and European plants

As per the report, the shortage will affect production at Chinese, North American and European plants during the first quarter of 2021, the company said. Models based on the company’s modular platform under the Volkswagen, Volkswagen Commercial Vehicles, Skoda, SEAT, and to a limited extent Audi brands were impacted stated the report.

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The report added that Murat Aksel, Volkswagen’s incoming purchasing chief, said that the company is doing everything in its power to minimize lost production and to ensure that normal deliveries to customers can be resumed as rapidly as possible.

As per the report, the auto industry is using more semiconductors than ever before while producing new vehicles with electronic features such as Bluetooth connectivity and driver assist, navigation and hybrid electric systems.

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