June 24, 2021

Gp Delivers1

The excellent automotive artisans1

Why VW blames suppliers for microchip shortages

“We have communicated our demand early on. We have passed on our forecasts which have confirmed that demand,” said the executive. “If suppliers do not trust our numbers and consult their own forecasts, we should have been informed straight away. This has not happened.”

As well as identifying potential weaknesses in the automotive supply chain, the question over who is responsible for the shortages could play a decisive role in any legal disputes. VW said last month that it is in talks with its main suppliers about possible claims for damages.

The current shortages are seen as stemming from a combination of factors, as automakers compete against the consumer electronics industry for chip supplies.

The VW executive said differing demand forecasts could explain the current problem, which has led VW to warn that chip supply will remain strained during the first half of 2021.

“This has caused a lot of trouble. If the supplier did not have a chip problem in its own supply chain, we would get our control units,” the executive said.

Fellow German companies Continental and Robert Bosch are two of the world’s top auto suppliers.

Representatives for the two suppliers said they would not comment on customer relations. Continental said it has been open and transparent with clients at all times.

Bosch said it was doing everything to keep its customers supplied and to keep impact to a minimum, adding it was in daily contact with suppliers and customers.

VW, which so far only procures chips indirectly via suppliers, said this month it would consider sourcing straight from manufacturers to protect its supply.