BERLIN — Volkswagen may have to chop manufacturing additional because of a semiconductor provide crunch, the automaker stated.

The auto business is going through renewed strains after a restoration in demand stretched provide chains earlier this 12 months, with COVID-19 outbreaks in Asia hitting each chip manufacturing and operations at industrial ports.

“We presently anticipate provide of chips within the third quarter to be very risky and tight,” VW stated in reply to a request for remark by Reuters on Thursday. “We will not rule out additional adjustments to manufacturing.”

VW stated it expects the scenario to enhance by the tip of the 12 months and goals to make up for manufacturing shortfalls within the second half so far as attainable.

Rival Toyota will scale back world manufacturing for September by 40 % from its earlier plan.

The most recent manufacturing woes comply with information that German chipmaker Infineon had been pressured to droop manufacturing at certainly one of its vegetation in Malaysia in June because of a coronavirus outbreak.

Infineon CEO Reinhard Ploss stated Aug. 3 that the automotive business confronted “acute provide limitations throughout the whole worth chain” and it might take till properly into 2022 for provide and demand to be introduced again into stability.