Volkswagen points finger at suppliers over car chip SHORTAGE

FRANKFURT (Reuters) – Volkswagen said bad planning on the part of its suppliers has compounded a computer chip shortage blighting the global auto industry, claiming it gave ample notice that the coronavirus’ hit to car production would be limited.

VW was in December the first carmaker to warn of a chip supply crunch that has hit global automakers, forcing them to cut or halt production as the semiconductor industry struggles to keep up with a recovery in the car sector.

The German company told its suppliers in April last year – when much of global car production was idled due to the coronavirus pandemic – that it expected a strong recovery in the second half of 2020, a VW executive, who declined to be named, told Reuters.

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

“We have communicated our demand early on. We have passed on our forecasts which have confirmed that demand,” said the executive Reuters News.

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