The world’s biggest car manufacturers will continue to face pandemic-related delays into the summer as a global chip shortage continues to wreak havoc with supply chains.
Heightened demand for consumer electronics has led to a mismatch between demand and supply for semiconductors, which are small computer chips crucial for building cars.
Volkswagen has already warned that it will build 100,000 fewer cars in the first quarter of this year due to the bottlenecks.
Meanwhile, Ford, Honda, Fiat, and Chrysler, also issued similar warnings to investors, blaming chip shortages.
In an interview with the Financial Times, Jacques Aschenbroich, the chief executive of Valeo, one of the world’s largest car parts suppliers, said the shortages would last at least into the summer.
“The second quarter is going to be difficult,” he told the paper. “There should be a recovery in the second half of the year. That’s what the entire industry is thinking about.”
Similarly, Continental, Germany’s largest-listed car supplier, said chip stocks were unlikely to replenish until the second half of the year. Renault warned the shortages would not improve until the third quarter.