A global semiconductor shortage is forcing Audi to delay the production of high-end cars and to furlough workers.
The Volkswagen AG brand has put more than 10,000 workers on furlough owing to reduced production but overall output for 2021 should not be affected because the company expects to make up for lost time in the second half, VW chief executive Markus Duesmann told the Financial Times.
The world’s biggest carmaker last month issued a warning about major production disruption in first-quarter manufacturing around the globe because of the bottleneck.
Daimler, Nissan, Honda, Ford and FCA have also said they are being affected by the chip shortage.
Honda has even been forced to shut its Swindon factory in England for four days this week.
"The situation is currently being monitored with a view to restart production on Friday, January 22," it told workers last Wednesday.
Meanwhile, a lobbying organisation for General Motors, Ford and the US operations of FCA has been petitioning American authorities to pressure Asian semiconductor makers into reallocating output from consumer electronics to essential chips for cars instead.
The American Automotive Policy Council is in talks with both the current US Commerce Department and the incoming administration of president-elect Joe Biden, according to Bloomberg.
The semiconductor shortage is a manifestation of changing consumer behaviour brought about by the Covid-19 pandemic.
With more and more people working, playing and staying at home, demand for consumer electronics has boomed. At the same time, the demand for cars plummeted worldwide in 2020.
This has meant chip manufacturers have pivoted production to focus on the consumer side but an unexpected rise in demand for cars, fuelled by a rebound from China, has caught them cold, Mr Duesmann told the Financial Times.
Bosch and Continental, parts suppliers to the likes of Audi and other leading carmakers, also spoke of difficulties in sourcing enough chips earlier this month.
Despite the challenges, Mr Duesmann said that Audi is doing all it can to limit production shortfalls to fewer than 10,000 models for the first quarter.
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
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Aug 17-22: Edmonton, Canada (World Triathlon Championship Final)
Nov 5-6 : Abu Dhabi, UAE
Date TBC: Chengdu, China
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%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EYasmin%20Azad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ESwift%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
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Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
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