Omicron to slow supply chain recovery, says Navistar

American truck maker Navistar International said on Wednesday that the Omicron variant of the coronavirus would possibly slow the recovery in the global supply chain.

Navistar is backed by German automaker Volkswagen.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.

Nevertheless, Navistar adjusted its production schedule for next year to match with suppliers’ expected abilities to deliver.

A number of countries have imposed restrictions on foreign travel following the identification of the Omnicron variant.