Volkswagen cuts production further over semiconductor shortage

FILE PHOTO: People walk past an ID. Store X showroom of SAIC Volkswagen in Chengdu, Sichuan province, China January 10, 2021. Picture taken January 10, 2021. REUTERS/Yilei Sun

HAMBURG (Reuters) - Volkswagen said on Wednesday it would further cut car production at its main plant in northern Germany due to a shortage of semiconductors that has hit the industry worldwide.

Staff producing the Tiguan, Touran, and Seat’s Tarraco models at its Wolfsburg site will work reduced hours, the group said in a statement. Production of its bestselling Golf model has already been affected.

Automakers and electronics makers are facing a global shortage of chips as consumer demand has bounced back from a slump caused by the coronavirus pandemic that has led to manufacturing delays.

Reporting by Jan Schwartz; writing by Thomas Seythal; Editing by Madeline Chambers