Volkswagen blames suppliers over car chip shortage

Volkswagen blamed bad planning by suppliers in compounding the computer chip shortage in the global auto industry.

According to the German carmaker, it informed its suppliers in April last year that it expected strong recovery in the second half of 2020.

At that time, much of global car production was idled due to the pandemic.

Despite the heads up, Volkswagen was notified one of its suppliers at the end of November of a chip shortage.

According to a Volkswagen executive, if suppliers do not trust their numbers and have to consult their forecasts, then they should have been informed straight away.

In December, Volkswagen became the first carmaker to warn of a chip supply crunch, forcing them to cut or halt production.

Representatives for Continental and Robert Bosch, the world’s two largest automotive suppliers, said they would not comment on customer relations.

Continental said it has been open and transparent with clients while
Bosch noted that it was doing everything to supply customers and keep impact to a minimum.

Volkswagen, which so far only procures chips via suppliers, would consider sourcing straight from manufacturers to protect its supply.