Carmakers warn chip shortage putting brakes on recovery

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Carmakers warn chip shortage putting brakes on recovery
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[ICYMI] Carmakers warn chip shortage putting brakes on recovery

Carmakers and suppliers have turned in strong results that beat expectations for the first half of the year, but they warned that a lack of semiconductors had crimped production.

That left carmakers in a tight situation as demand returned, with many slowing or even temporarily halting production at factories. "The risk of bottlenecks and disruption in the supply of semiconductor components has intensified throughout the industry," the German automaker said.VW said one way it was coping with the shortage was by favouring high-end vehicles, which bring in more money.

Nissan has been forced to push back the launch of its new all-electric crossover, the Ariya, due to the shortage of chips, which some news outlets have dubbed a"chiptastrophe" or"chipaggedon"."We've reached the peak of the crisis," said Ferdinand Dudenhoeffer, head of the Center for Automotive Research in Germany.

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