Volkswagen marks a branch at suppliers over car chip shortages

FRANKFURT (Reuters) – Volkswagen says poor design on the part of its suppliers has contributed to a shortage of computer chips damaging the global automotive industry, saying it has warned enough that the coronavirus’ would affect car production limited.

VW in December became the first carmaker to warn of a crushing supply of chip that has hit global manufacturers, forcing them to cut or stop production while the semiconductor industry fails. struggle to keep up with the car department.

The German company told its suppliers in April last year – when much global car production was introduced due to coronavirus outbreak – that they expected a strong recovery in the second half of 2020, he said. VW agency, which declined to be named, told Reuters.

Volkswagen, the world’s second-largest car dealer, says it was made aware of the chip shortage by one of its suppliers at the end of November, but that warning came too late.

“We have announced our application early. We have provided our projections which have confirmed that demand, ”said the executive team.

“If providers do not trust our figures and consult their own forecasts, we should have been notified immediately. This did not happen. ”

As well as identifying potential weaknesses in the car supply chain, the question of who is responsible for the shortage could play a definite part in any legal disputes down the line. .

The current shortages are seen to come from a combination of factors, as automated manufacturers compete against the sprawling consumer electronics industry for chip supply.

The executive team said different demand forecasts could explain the current problem, which prompted VW to warn that chip supply will be halted in the first half of 2021.

“This has caused a lot of trouble. If the supplier did not have a chip problem in its own supply chain, we would get our control units, ”said the executive team.

The German companies Continental and Robert Bosch are the two largest car suppliers in the world.

Representatives for both companies said they would not comment on a messenger relationship. Continental said it has always been open and transparent vis-à-vis messengers.

Bosch said it was doing everything it could to keep their messages going and to keep the impact to a minimum, adding that it was in daily communication with suppliers and customers.

Volkswagen, which so far only buys chips indirectly through suppliers, said this month that it would consider procuring directly from manufacturers to protect their supply.

Reporting by Jan Schwartz and Christoph Steitz; Additional commentary by Douglas Busvine; Edited by Keith Weir and Jan Harvey

.Source