Audi has been forced to place more than 10,000 workers on furlough due to a global shortage of semiconductors. The company will also have to delay the production of some vehicles.
It is reported that the automaker is placing workers from its factories in Ingolstadt and Neckarsulm on short-time working until January 29, a move that will impact production of the Audi A4 and A5.
However, speaking with The Financial Times over the weekend, chief executive Markus Duesmann said that overall production shouldn’t be affected as they will look to make up for lost time in the second half of 2021. He added that Audi will “do everything we can to keep it below 10,000 [fewer models produced] for the first quarter.”
Read Also: Nissan, Honda Forced To Slow Production Due To A Global Shortage Of Semiconductors
A plethora of automakers around the world are feeling the pinch due to ongoing supply shortages of semiconductors. In North America, manufacturers including Ford, Fiat Chrysler Automobiles, Toyota, Subaru and VW have all been forced to adjust production schedules until they can get their hands on the microchips. In other markets, VW, Nissan, Ford, Honda, and Daimler have also had to tweak production schedules.
Speaking with Car and Driver, vice president analyst at consulting firm Gartner, Gaurav Gupta, said there are a handful of factors responsible for the shortage. In the spring, demand for new vehicles fell, so automakers reduced orders for microchips. At the same time, demand for electronics such as the PlayStation 5, Xbox Series X, and computers for those working from home skyrocketed, and when the automotive industry rebounded, it all resulted in a global shortage.
“With lead times of six to nine months, the semiconductor industry has not been able to scale up fast enough to meet this unexpected growth in automotive demand,” added auto supplier Continental. “The bottlenecks from the semiconductor industry are expected to continue well into 2021, causing major disruptions in Continental’s production.”
