Chip shortages continue to harm the world’s automotive industry, with several of the world’s biggest automakers blaming the crisis for disappointing financial results this week.Volkswagen and Stellantis said Thursday that the ongoing semiconductor shortage remains a major problem for them.
Volkswagen CEO Herbert Diess said that it was a challenging quarter. Our volume brands suffered most because of semiconductor supply. With no end in sight, the semiconductor chip shortage is now expected to cost the global automotive industry $210 billion in revenue in 2021.
Volkswagen also missed analyst expectations when it reported its third-quarter results Thursday. It reported a 14% fall in third-quarter revenue on a pro-forma basis after semiconductor shortages cut planned quarterly production by 30%, or 600,000 vehicles.
Chief Financial Officer Richard Palmer said that the level of chip shortage was probably slightly higher than what we had expected when we last spoke to the market in August. They also added that the full-year total of lost production due to the chip shortage would top a previous forecast of 1.4 million units. Palmer said the business has seen a moderate improvement on the chip supply situation this month compared to September. He expects the trend to continue through the fourth quarter.