The semiconductor chip issue has finally caught up with Wolfsburg.
The global semiconductor chip shortage has struck again. Ford has experienced problems with the F-150 as a result of the shortage, Cadillac has had to cut out a key feature from the Escalade, and Nissan has been severely impacted too. Now, it's Volkswagen's turn to adapt to the problem.
According to a report from German publication Wolfsburger Allgemeine, the coming week will see the automaker build "significantly fewer cars" as it gets to grip with a shortage of both semiconductor chips and other electronic components. This comes after a similar situation took place last month, proving that the chip shortage is far from over.
According to a company spokesperson, work on assembly line number three at the Wolfsburg plant in Germany will only be carried out in the morning shift from the coming week until Thursday, with the shortage of electronic components and chips being directly blamed as the cause for the go-slow. It's unclear which cars will be affected by the reduced production capacity, but the Wolfsburg plant is responsible for producing various versions of the Volkswagen Golf GTI, along with the Touran, Tiguan, and some other models.
Still, things aren't as bad as they could be. While Volkswagen is slowing production, some of the abovementioned brands like Ford have had to shut down altogether, sometimes for weeks on end. Elsewhere, Toyota is still struggling to get up to speed with the Land Cruiser.
It's a worrying problem that is only in its early phases right now, but there is hope on the horizon. A major US chipmaker has begun preparations to double its chip production for the year, and Samsung is currently building a $17 billion chip factory a stone's throw from Tesla's Texas Tera factory.
The ongoing shortage continues to highlight the dependence of the modern car on electronic components, and while these modern advances have meant greater connectivity, more features, and an increased appeal to younger buyers, there's no doubt that an entire industry being held hostage by the shortage of a single type of component is a worry that needs to be addressed.