Volkswagen expects chip supply to remain tight in first half of 2021

FILE PHOTO: The logo of German carmaker Volkswagen is seen on a rim cap in a showroom of a Volkswagen car dealer in Brussels, Belgium July 9, 2020. REUTERS/Francois Lenoir

FRANKFURT (Reuters) - Carmaker Volkswagen said on Tuesday that it expects chip supply to remain tight in first half of 2021 but that it would do everything to compensate for delay in production in the second half of the year.

“Volkswagen is continuously working on minimising the effects of the global semiconductor bottleneck on production”, the carmaker said.

Global automakers have been caught off guard by a shortage of semiconductors in the wake of a rapid recovery of the automotive market.

Volkswagen has reduced working hours at several plants and called for public funding programmes to help mitigate chip supply issues.

Reporting by Christoph Steitz; Writing by Arno Schuetze. Editing by Jane Merriman