VW's SEAT hopes to make up for lost time as manages chip shortage



© Reuters. FILE PHOTO: Workers assemble vehicles on the assembly line of the SEAT car factory in Martorell, near Barcelona, Spain, October 31, 2018. Picture taken October 31, 2018. REUTERS/Albert Gea//File Photo

By Joan Faus

BARCELONA, May 25 (Reuters) –

Volkswagen (DE:)’s VOWG_p.DE Spanish brand SEAT has maintained broadly stable production despite the global shortage of semiconductor chips affecting the auto industry, its chairman Wayne Griffiths said on Tuesday.

However, he said production at the SEAT plant near Barcelona would continue in August when it typically stops for four weeks of summer holidays to recover production lost in the first half.

“The lack of semiconductor (chips) is still a challenge but we are managing it well … What’s most important is to have a good demand for our products,” he told a news briefing, calling the supply problems an occasional issue that should be fixed over time.

Griffiths said SEAT had just lifted the furlough scheme it initiated in March because of the chip shortage.

In additional to keeping the Barcelona plant open in August, he said the carmaker wants to increase production at one of its assembly lines from the end of May until July provided there are sufficient chips as it strives to meet increasing demand for its models Leon and Formentor. The latter is sold under its associated sports brand CUPRA.

Griffiths’ upbeat comments contrast those made by VW head Herbert Diess, who in early May said the German carmaker was in “crisis mode” over an ongoing lack of chips and that the impact of the shortage would intensify and hit profits in the second quarter. (Full Story)

READ  Wall Street shares rise after Fed announces soft approach to inflation
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here