VW CEO fears chi crunch will persis for many more yrs

First, carmakers thought the worst of the chip shortage would be in the first half of the year. Then, it was the third quarter. Now, the heads of Germany’s automakers are pushing back even further their estimations of when the supply issue will stop constraining car production.

“Probably we will remain in shortages for the next months or even years because semiconductors are in high demand,” Volkswagen AG chief executive officer Herbert Diess said Monday on Bloomberg Television. “The internet of things is growing and the capacity ramp-up will take time. It will be probably a bottleneck for the next months and years to come.”

Diess and his counterparts Ola Kallenius at Daimler AG and Oliver Zipse of BMW AG, delivered their doses of distress as most European carmakers gathered in Munich for the first auto show since before the pandemic hit.

Daimler AG’S chief executive officer cautioned that the global semiconductor shortage may not entirely go away next year and could take until 2023 to be resolved, a view shared by larger German rival Volkswagen AG. ting deliveries will be rough line with 2020, rather tha significantly.

Kallenius cautioned on day that the semicondu shortage may not entirel away next year and could until 2023 to be resolved. Z warned the crisis could las to 12 months.

VW and Mercedes are am the automakers that have b hit this quarter by factory s downs in Malaysia, whic recent years emerged as a m hub for chip testing and pac ing.

Key suppliers including I eon Technologies AG, NXP S conductors NV and STMI electronics NV operate plan the country.

There is hope that the si tion starts to ease in the fo quarter, Daimler’s Kalle said, though he anticipates out from a “structural” dem issue also will influence in tries in 2022. A Japanese c maker that supplies to To Motor Corp. similarly predi last month that the su crunch could last through a next year.

The auto industry world will need roughly 10% more duction capacity for ch Murat Aksel, VW’S purcha chief, told reporters late S