Directors of car manufacturers such as Volkswagen AG and General Motors Co. they were optimistic about the industry’s recovery in early fall. Demand returned from pandemic lows, and their factories hummed again.
Then came the warnings. Same as in a Skype call on November 12 between VW’s head of logistics and officials at car parts supplier Continental AG. The supplier said it would not deliver a range of basic components needed by VW due to a global shortage of semiconductors, people familiar with the call said.
Other car manufacturers received similar alerts from suppliers.
In December, parts from Continental, Robert Bosch GmbH and other suppliers dried up so much that VW announced that it would stop production of bestseller brands, such as Audi and its VW brand, at plants in Europe, China. and North America. Audi, citing a lack of chips, has sent 10,000 factory workers for the first time since the spring crash. Ford Motor Co., Honda Motor Co. and others soon reduced vehicle production from large pickups to compact sedans.
Continental began informing customers in the fourth quarter about supply chain issues, a company spokesman said, refusing to comment on specific customer calls. Bosch declined to comment on exchanges with suppliers. VW, GM, Ford and Honda said they are closely monitoring the situation and working to limit the impact.