Volkswagen CEO: The Shortage of Chips Reduces The Output by 100,000 Units And will Sign Contracts With Suppliers

Volkswagen Group Chief Executive (CEO) Herbert Diess  said at the annual press conference on Tuesday (March 16) that the shortage of wafers has resulted in a shortfall of 100,000 units of Volkswagen’s production. A shortfall will not be able to be filled within this year.
Diess said that Flowserve will sign agreements directly with semiconductor suppliers to ensure supply.

The Financial Times reported on March 14 that Continental AG’s chief financial officer Wolfgang Schafer said in an interview that the auto industry must improve its predictive capabilities to avoid another chip shortage in the future. He said that in the past three years, car dealers have always asked more and ordered less.

Flowserve has already expressed in January that it is considering skipping the Continental Group and other large parts suppliers and directly establishing closer relationships with chip manufacturers.

Bloomberg reported on March 12 that Hidetoshi Shibata, CEO of Renesas Electronics Corporation, said in an interview that the automotive chip market will continue to be tight in the first half of this year, and it seems that the shortage of supply will continue into the second half of the year. .

Automotive chip supplier NXP Semiconductors (NXP Semiconductors NV) announced on March 11 that the cumulative loss of the two Austin fabs so far is equivalent to one month’s wafer production, and the revenue in the second quarter of 2021 will be short by about 100 million US dollars. .

U.S. motor vehicle assembly volume hits lowest in June last year

The Census Bureau of the U.S. Department of Commerce announced on Tuesday that the retail sales of motor vehicles and related parts in February 2021 fell 4.2% to $115.666 billion, the largest monthly decline since April 2020.

The Federal Standards Committee (FED) announced on Tuesday that the annual rate of vehicle assembly in the United States in February 2021 (adjusted for seasonal factors) fell by 13.1% from 10.65 million in January to 9.26 million, the lowest since June 2020 , Showing a monthly decrease for the sixth time in 7 months.

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