Volkswagen warns of worsening output hit from chip shortage

BERLIN/LONDON: Volkswagen AG has warned managers to prepare for a bigger production hit in the second quarter than the first due to a global chip shortage, the Financial Times reported on Saturday.

“We are being told from the suppliers and within the Volkswagen Group that we need to face considerable challenges in the second quarter, probably more challenging than the first quarter,” Wayne Griffiths, president of Volkswagen’s Spanish brand Seat, told the FT. Griffiths added that the shortage was the “biggest challenge” the company faces at the moment.

Volkswagen has said it expects chip supply to remain tight in the coming months, adding it could not provide visibility for the full year.