Semiconductor crisis: Toyota and VW announce reductions in production
Both VW and Toyota have announced that they are temporarily cutting vehicle production due to the continuing global chip shortage, with Volkswagen being the latest to reveal the production hiatus.
VW's main plant in Wolfsburg will only operate during its initial shift after the summer break due to lack of supply, Bloomberg reported this morning.
Its Wolfsburg plant is "the largest car plant in the world" and employs around 60,000 people. Audi temporarily suspends production, extending its summer break by a week. In the end, employees leave a little more on vacation. The global shortage of semiconductors could end up reducing global automobile production this year by about 7.1 million vehicles , Bloomberg said .
IHS predicts that 2.1 million units could be lost in the third quarter of 2021 alone. There will be no real normalization of production until at least the second quarter of 2022 thus prolonging a crisis that comes one year ahead.
An IHS report stated: “The situation is still full of challenges. We are also seeing further volatility due to the Covid-19 blockade measures in Malaysia, where a lot of back-end chip packaging and testing is carried out ”.
Toyota said it plans to temporarily shut down 14 plants next month, reducing its production by 40%.
Kazunari Kumakura, Chief Officer of Toyota Purchasing Group, said this week: "Especially in Southeast Asia, the spread of Covid and blockages are having an impact on our local suppliers." The deelta variant, which is now coming with all its vehemence in these areas, is making its effect felt throughout the logistics chain. Moreover, the large investments made by various companies in the sector, to increase production, have in turn been slowed down and have not yet reached an operational level.
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.
The article Semiconductor crisis: Toyota and VW announce reductions in production comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/crisi-dei-semiconduttori-toyota-e-vw-annunciano-riduzioni-nella-produzione/ on Sat, 21 Aug 2021 08:00:30 +0000.