Categories: Europe

VW could search damages from Bosch and Conti over chip shortages

BERLIN — Volkswagen is in talks with its predominant suppliers about potential claims for damages on account of a scarcity of semiconductors, an organization spokesman stated.

The spokesman’s feedback got here after Automobilwoche reported that VW could search compensation from Robert Bosch and Continental after the automaker was compelled to cut back manufacturing in Germany due to an absence of automotive microchips.

“For Volkswagen, the highest precedence is to attenuate the consequences of the semiconductor bottleneck on manufacturing,” the VW spokesman instructed Reuters on Sunday.

VW needed to resolve the issue in shut cooperation with its suppliers however this alternate would additionally embody analyzing claims of damages with its suppliers, the spokesman stated.

VW has needed to reduce output at its automobile factories of Wolfsburg and Emden, and a part plant in Brunswick, due to a scarcity of microchips.

The automaker is speaking to different suppliers and desires Bosch and Continental share the burden and partly compensate the corporate for the ensuing further prices, Automobilwoche, a German language sister publication of Automotive Information Europe, reported.

Analysts stated VW may have a case for successful a reimbursement from the partsmakers.

If the suppliers ordered too few chips to fulfill their supply obligations, they’re prone to find yourself sharing within the prices of the manufacturing stoppages, stated analyst Frank Biller of LBBW.

Frank Schwope, of NordLB, stated the prices are prone to be within the two- to three-digit million vary. Nonetheless, the prices may very well be diminished if VW made up for the misplaced manufacturing later within the 12 months, he stated.

Bosch stated such points are mentioned straight with its clients and suppliers. “We’re at present specializing in sustaining provide chains as a lot as potential regardless of a tense scenario available in the market,” a Bosch spokesman instructed Automobilwoche.

Continental didn’t instantly reply to requests for remark.

Ford, Daimler and Audi are amongst automakers which have additionally been forced to cut production at factories in Germany.

Daimler may comply with VW in searching for damages from the suppliers.

“We at present see our main job as efficiently minimizing the affect of the worldwide provide bottleneck,” a Daimler spokeswoman instructed Automobilwoche. “We’re clarifying adverse results bilaterally and in partnership,” she added.

BMW has not been affected by the availability bottlenecks however its gross sales chief Pieter Nota instructed journalists final week: “We’ve ordered the quantity for 2021 and we count on our suppliers to conform on time.”

BMW received damages from Bosch in 2017 when the automaker was compelled to close down manufacturing traces due to a bottleneck at an Italian firm that provided the casings for Bosch’s electronic-steering methods.

BMW demanded a mid-double-digit million sum in damages from Bosch. The declare was settled for an undisclosed quantity.

Producers of microchips elevated manufacturing for smartphone makers resembling Apple and Samsung when automobile factories had been closed and demand for autos plunged throughout the first coronavirus lockdowns final 12 months. They’re struggling to fulfill rebounding demand from automotive firms due to  the semiconductor trade’s prolonged manufacturing course of.

Reuters and Automobilwoche contributed to this report

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