According to reports on May 17, Volkswagen said it will suspend production at its Chattanooga plant for two weeks beginning on June 7. The factory is in charge of manufacturing the Atlas, Atlas Cross Sport, and Passat models. Toyota also noted that due to chip shortage, the company will halt three production lines in Japan in June, resulting in a reduction of approximately 20,000 vehicles. To ease the market uncertainty and panic, Lisa Su, the CEO of AMD, refers to the current semiconductor shortage as an instance of cyclical supply and demand imbalance. However, market experts have not given specific dates for relief of the situation. Susquehanna Financial Group warned of chip delivery time increasing from 17 weeks in April, exceeding the historical high-level in 2018.
Toyota and Volkswagen to Halt Vehicle Production Due to Chip Shortage
According to reports on May 17, Volkswagen said it will suspend production at its Chattanooga plant for two weeks beginning on June 7.
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