German Automobile Giant Volkswagen came up with the news that it may produce fewer vehicles next year as a result of the chip crisis due to solid-state power supply issues. On Thursday, it was reported in Manager Magazine, citing individuals who know the issue.
The report said, The manufacturer, which has reduced its projections for 2021 car deliveries last week from 9.3 million to 9 million, is preparing for the possibility that the current chip shortage may continue until at least early 2023.
But why did the VW group decline to comment on the report?
With brands such as Audi, BMW, Porsche, Bentley and Skoda, Group VW refused to comment on the report and expected a slight relaxation in supply conditions for 2022. However, the first half of the year would be highly volatile.
Deliveries from the VW Group rose by 6.9%, slightly fewer than 7 million vehicles in the first nine months, the automaker reported in a statement of operations on October 28th.
VW Group sales fell by 16%, reaching 9.2 million vehicles in 2020, affected by production outages and temporary exhibition room closures during periods of isolation to slow the spread of COVID-19.
Daniela Cavallo, head of VW’s workforce, expects the flea crisis to escalate. “We’re going to have shortages again next year. And it’s not going to get any better by 2023 either. The worst is yet to come,” Cavallo said.
Volkswagen Audi, which side by side with his brand Skoda extends its Christmas holiday until January 10th due to supply bottlenecks, said it expected the situation to last for “months”.
“We expect to have addressed the crisis for months into the year to come.” Some spokesperson said. ” The shortfall could last even longer.”
Porsche, which also belongs to Volkswagen, declared in November the crisis stressed the need for car manufacturers to take production into their own hands.
“Anyone who believes the flea crisis will subside over the next year is mistaken,” CEO Oliver Blume told Germany’s Börsen-Zeitung.
Volkswagen Automobile Group
Volkswagen AG, known globally as the Volkswagen Group, is a German multinational car manufacturing company in Wolfsburg, Lower Saxony, Germany.
Since the beginning of the 2020s, Porsche SE held a publicly-traded family business majority, which is, in turn, half-owned but wholly owned by the Austrian-German Porsche and Piëch family.
It designs, manufactures, and distributes passenger utility vehicles, motorcycles, engines and turbomachines, and offers related services, including funding, leasing and fleet management.
In 2016, it was the largest vehicle manufacturer globally. It surpassed Toyota and retained that title in 2017, 2018 and 2019, with 10.9 million vehicles for sale.
It retained most of its market share in Europe for more than a couple of decades. It ranks 7th on the Fortune Global 500 list of the world’s largest companies for 2018.
Volkswagen was established in 1937 to build the car, which would be known as the Beetle. The Volkswagen Group sells private vehicles under the Audi, BMW, Bentley, Bugatti, Jetta, Cupra, Lamborghini, RUF, Porsche, SEAT, Škoda and Volkswagen marques.
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