No. 2 automaker Volkswagen said Thursday it might be forced to make similar cuts to production soon.
“New outbreaks of Covid-19 in Asia — for example in Malaysia — are leading to renewed shuttering of key semiconductor manufacturing facilities,” said Volkswagen. “As things stand, we therefore expect that the supply of chips will remain very volatile and strained in the third quarter of 2021. Further adjustments to production cannot be ruled out.”
Malaysia is a major supplier of computer chips used in the auto industry.
Overall auto production around the globe and across the industry was way off in the second quarter because of the chip shortage. But automakers had been anticipating the shortage of chips would abate in the second half of this year, allowing them to play catch-up in production.
Then the Delta variant happened. Vaccination rates remain low in Southeast Asia, complicating matters for suppliers.