back to article Volkswagen: Expect chip supply problems until 2024

The ongoing supply chain woes in the semiconductor market are set to last through this year and next, according to Volkswagen, which believes underlying structural problems are unlikely to be resolved before 2024. This opinion was delivered by the carmaker's chief financial officer Arno Antlitz in an interview with German …

  1. Yet Another Anonymous coward Silver badge

    Volkswagen's problem

    All the semiconductors they can find calculate 2+2=4, when VW's requirement is that 2+2=3

    1. Anonymous Coward
      Anonymous Coward

      Re: Volkswagen's problem

      They need to start scouring ebay for some early Pentium's then - problem solved.

  2. Version 1.0 Silver badge

    SMT vs IC sockets?

    SMT leaves you with virtually no alternative options, but when we did everything with chips in IC sockets it was easy to bend a pin out and then wire it somewhere else.

  3. Persona

    Knee Jerk

    The car manufactures response to Covid and lockdowns was to cancel their future chip orders. Then when the recovery came they went back to the chip manufactures and asked them to reinstate delivery only to find that the chip manufacturese were at capacity with new customers with firm orders for the next couple of years

    1. David Hicklin Bronze badge

      Re: Knee Jerk

      and just what were they supposed to do?

      They had no idea how long the shutdown would last and little if any capacity to store stuff, bear in mind that whilst we are all talking chips most of the stuff would be brought in from other companies as completed assemblies.

      1. tmTM

        Re: and just what were they supposed to do?

        Probably anything other than what they did, because it's been an utter shambles for several years now.

        Certain brands have faired significantly better, Toyota has a much more diverse supply chain and Tesla seem to have weathered the storm pretty well.

        There definitely needs to be questions asked of some CEO's and the performance of their company over the pandemic period. Clearly some were not up to the task.

        1. Boothy

          Re: and just what were they supposed to do?

          Toyota quite literally wrote the book on just-in-time (JIT) namely the 'Toyota Production System'.

          They understood that you can't just do JIT, without looking at the fragility of the supply chain itself, and accommodating for that. e.g. If you have a back up supplier for some item, make sure the backup supplier isn't in the same earthquake zone as the primary suppler. If it cant be avoided (just one supplier in the world, or they are all in one region of the world, then make sure you keep some stock. Check for single points of failure in the full supply chain, i.e. are multiple separate suppliers in turn depended on a single factory somewhere else etc etc.

          Problem with most other car manufacturers, is they got the book, but only seem to have read a few chapters. So implemented JIT, without really any consideration of supply chain fragility.

          Or put it another way, they prioritised cost reduction (aka profits), over resilience.

      2. Persona

        Re: Knee Jerk

        As Antlitz is quoted in the article to have said

        The first task here is to create greater transparency throughout the supply chain. We then want to stabilize our supply chains via long-term contracts with capacity security,

        it strongly suggests that he believes having long term contracts, i.e. not canceling orders as a knee jerk reaction, would be a good idea.

  4. Kev99 Silver badge

    The problems with computer chip availability in the auto industries lies primarily with themselves. For decades, the HVAC systems were controlled by rheostats, thermistors, and bi-metal strips. Ford has decided to no longer provide rear seat temp controls because of the lack of chip. Automatic transmissions were operated by changes in oil pressure, not chips. Et cetera ad infinitum, ad nauseum. Add to that the decision to save a fractional penny a unit and send production to Asia and one can see the the auto company screwed the pooch royally.

  5. Anonymous Coward
    Anonymous Coward

    VAG lie

    And that’s the truth

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