Volkswagen is struggling with the semiconductor crisis: what the company’s analysis shows

The head of acquisitions at the VW Group said that the deficit could be slightly reduced in the second half of this year.

The Volkswagen Group does not expect the global semiconductor shortfall to end this year, although it is expected to decline slightly in the second half, the carmaker’s chief purchasing officer said.

“The volatile situation will affect us at least after the first half of this year,” said Murat Aksel, head of procurement for VW and VW Group.

Automakers around the world have been hit by a shortage of semiconductors due to supply chain disruptions due to COVID-19, as well as growing demand for semiconductors from consumer electronics companies.

The estimated total lost volume since the beginning of the shortage in 2021 was 10.81 million units at the end of January, said Sam Fiorani of AutoForecast Solutions. The total volume lost so far in 2022 is 370,486 units, he said.

Problems for Volkswagen

Moreover, Volkswagen plans to reduce almost all night shifts at its main plant in Germany, as Europe’s largest carmaker continues to struggle with the semiconductor crisis.

VW will reduce the night shift, which gives workers extra pay, from the beginning of the second quarter on three assembly lines in Wolfsburg, the carmaker said.
The global shortage of chips last year forced VW to reduce production at its Wolfsburg plant. The factory produces the VW Golf, which was consistently the best-selling car in Europe, including last year, with a volume of 205,720, despite a decrease of 27%.

The decision to interrupt the night shift was made in response to repeated cancellations with short notice and the need to lay off workers, the company said.

“It is inevitable that we will adapt our model of change to stay competitive and secure long-term jobs,” said Gunnar Kilian, a member of the board of directors responsible for staff. “Unfortunately, this step will also involve reductions in the workforce and the loss of hardship allowances for the night shift.”