Volkswagen expects chip shortage to ease later this year

Volkswagen expects a continued hit from a shortage of semiconductors in 2022, although it should be able to increase production in the second half of 2022, CEO Herbert Diess said on Wednesday.

“The supply situation is getting better, but even in this year, 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,” Diess said.

Volkswagen said in early February that night shifts at Wolfsburg would be reduced on some production lines due to fewer chips.

Diess said capacity adjustments would also be required in the medium term.

He added that the supply of chips was the only significant challenge at the moment, with top models of its premium brands already sold out for the whole of 2022.