Volkswagen will reportedly produce fewer cars in 2022

Volkswagen expects to produce even fewer cars in 2022 compared to the current year due to the continued shortage of semiconductors according to a report by Manager Magazin on Thursday.

The report cited people familiar with the matter.

The automaker has reduced its forecast for 2021 vehicle deliveries last week to 9 million from 9.3 million and is now preparing for the possibility that the ongoing chips shortage could last until at least early 2023.

In the worst-case scenario, deliveries could decline to 8 million cars in 2022 – but even if things go relatively well, deliveries could be slightly below 2021’s, the report said.

Volkswagen declined to comment on the report, saying it expected a slight easing of the supply situation in 2022 but that the first half of 2022 would remain very volatile.

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.