struggle

‘Like fire-fighting’: China carmakers struggle with chip shortage | Automotive Industry News

Automakers around the world have had to adjust assembly lines due to chip shortages caused by high demand for cars.

Car industry executives are being rattled by a global shortage of semiconductors which is hitting production in China, after hoping the world’s biggest car market could spearhead global recovery in the sector.

Automakers around the world have had to adjust assembly lines due to the shortages, caused by manufacturing delays that some semiconductor makers blame on a faster-than-expected recovery from the coronavirus pandemic.

Volkswagen AG, China’s biggest foreign automaker which wants to sell more than four million vehicles in the country, said the effect of the shortage remains unabated in the second quarter this year.

Stephan Woellenstein, Volkswagen’s China chief, told reporters on Sunday it was hard to gauge how much production Volkswagen might lose week-to-week or even month-to-month because of the chip shortage.

“It’s really like fire-fighting … In

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New car orders struggle ahead of March plate change



a car parked in a parking lot: Empty new car showroom


© Provided by Motoring Research
Empty new car showroom

Retailers are reporting new car orders for the new March 21-series registration plate are down by as much as half as a 39.5 percent sales decline in January 2021 looks set to continue.

There are early signs of a similar decline in February 2021.

Automotive service company Cox Automotive surveyed car retailers and 3 in 4 reported a downturn in forward orders for March 2021 of between 10 percent and 50 percent, compared to 2020.

“Q1 is a critical period” said Cox Automotive strategy director Philip Nothard, “and it’s vital that showrooms are able to re-open as soon as possible.”

However, lockdown isn’t the only challenge faced by car dealers – and may actually be masking some of the other issues.

There are issues with new car supply related to the Brexit deal, said Mr Nothard, “with border frictions continuing and

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