Volkswagen To Produce Fewer Vehicles In 2022 Due To Chip Shortage

Volkswagen (VLKAF) says it expects to produce fewer cars in 2022 due to the ongoing shortage of semiconductor chips.

The carmaker, which reduced its forecast for 2021 vehicle deliveries last week to 9 million from 9.3 million previously, is preparing for the possibility that the current chip shortage could last until at least early 2023.

In the worst-case scenario, deliveries could fall to 8 million cars next year, but even if things go relatively well, deliveries could be slightly below this year's deliveries, the company said.

Other carmakers, including BMW (BMWYY) and Daimler (DDAIF) have said they expect chip problems to continue well into 2022.

Whether buying computer chips directly from manufacturers, reconfiguring cars, or producing them with parts missing, many carmakers are getting creative to cope with the global semiconductor shortage that some had expected would ease by the beginning of next year.

Volkswagen's Audi, which alongside its Skoda brand is lengthening its Christmas break to January 10 because of the supply bottleneck, said it expected the situation to carry on for“months on end.”

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