Chip undersupply to last until 2024, says Volkswagen CFO: report
FOX Business Flash top headlines for April 8
Here are your FOX Business Flash top headlines for April 8.
Semiconductor chip supply is unlikely to be enough to completely satisfy demand again until 2024, Volkswagen VOWG_p.DE Chief Financial Officer (CFO) Arno Antlitz said in an interview with German daily Boersen-Zeitung on Saturday.
He said that although bottlenecks would likely begin to ease towards the end of this year, with production returning to 2019 levels next year, this would not be enough to meet heightened demand for the chips.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"The structural undersupply will likely only resolve itself in 2024," Antlitz said.
Volkswagen sign during the first China International Import Expo in Shanghai, China. (Oriental Image via Reuters Connect / Reuters Photos)
A lack of wire harnesses from Ukraine was also still causing some shifts to be cancelled, Antlitz said, even as the company was establishing new supplier relationships to source the component from other countries.
MICRON CEO SAYS CHIP SHORTAGE IMPROVING, BUT COULD LAST INTO 2023
Asked about how funds from a possible IPO of Porsche AG, planned for the end of the year, could be used to bolster Volkswagen's finances, Antlitz said the money could help fund the carmaker's software unit and its battery production plans.
CLICK HERE TO READ MORE ON FOX BUSINESS
"Only those who can map out their battery supply chain have the advantage at scaling in electromobility. Securing the supply chain comes with that. A Porsche IPO could give us a lot more flexibility in financing this," Antlitz said.
(Reporting by Victoria Waldersee; editing by Jason Neely)