“Lack of core” production cuts by six figures Volkswagen still faces challenges in the third quarter

Volkswagen recently said that due to the “lack of cores” since the end of last year, the cumulative production loss has reached six figures. “While there are signs that the ‘core shortage’ is starting to ease, we still expect a very challenging third quarter from a supply perspective.”

As Volkswagen’s largest profit contributor, Audi said, “We will accelerate research on countermeasures, but given the continued shortage of chips, it is not expected to fully make up for the losses caused by production cuts this year.”

According to a comprehensive foreign report from China Economic Net, Volkswagen recently stated that due to the “lack of cores” since the end of last year, the cumulative production loss has reached six figures. “Although there are signs that the ‘core shortage’ is starting to ease, from a supply perspective, we expect the third quarter to remain very challenging,” said Alexander Seitz, chief financial officer of the Volkswagen brand.

In the first half of this year, Volkswagen’s operating profit hit a record, and in terms of chip configuration, it prefers Porsche and Audi, which have higher profit margins. Volkswagen said the current response to the “lack of cores” was “pretty good”, but also highlighted “some impacts” that could be experienced in the third quarter.

“Despite these successes, we should keep our feet on the ground,” said Porsche CFO Lutz Meschke. “The continued tightness in the chip market may become more apparent in the third quarter because of the uncertainty surrounding the COVID-19 pandemic.”

Audi, Volkswagen’s biggest profit contributor, said there were signs that the chip supply situation would remain grim in the coming months. “We will accelerate research on countermeasures, but given the continued shortage of chips, it is not expected to fully make up for the losses caused by the production cuts this year.”

Source: Gasgoo

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