Volkswagen CEO expects semiconductor shortage to ease later this year

The CEO of German automaker Volkswagen has said that he expects the semiconductor shortage to continue throughout 2022, but that the company should be able to ramp up production in the second half of the year, according to reports in Reuters.

"The supply situation is getting better, but even in 2022 we will not be able to build all the cars we could sell. But we see opportunities for further production increases, especially in the second half of the year," Herbert Diess said in a speech.

Car manufacturers around the world have been hit by a shortage of semiconductors created largely by the disruptions to supply chains caused by the pandemic. This has been compounded by the skyrocketing demand from consumer electronic companies.

Read more: Inside the EU's Chips Act

Volkswagen said in early February that night shifts at its plant in Wolfsburg would be cut on some production lines because of the lack of chips. Diess said capacity adjustments would also be needed in the medium term.

The CEO added that chip supply was the only major challenge to the company at the moment, with top models of its premium brands already having sold out for the whole of 2022, while its truck businesses also have well-filled order books.

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