Volkswagen to Claim Damages from Suppliers over Chip Shortage

Volkswagen is in talks with its main suppliers about possible claims for damages due to a shortage of semiconductors, according to Reuters report, on Sunday. Meanwhile, automakers around the world are shutting assembly lines due to problems in the delivery of semiconductors, which in some cases have been exacerbated by the former Trump administration's actions against key Chinese chip factories.

Automobilwoche magazine reported that, the manufacturers of semiconductors shifted production to other industrial sectors with high growth rates such as consumer electronics which left clients in the car industry with less chips than needed.

On other hand, the Volkswagen spokesman reported that the top priority is to minimise the effects of the semiconductor bottleneck on production, adding the company wanted to resolve the problem in close cooperation with its suppliers.

Among the affected car suppliers are Germany's Bosch and Continental, which in return are dependent on chip suppliers in Taiwan and other Asian countries.

A Bosch spokeswoman reported that, the company was currently focusing on maintaining supply chains as much as possible. "We will discuss all further aspects of the shortage of semiconductors directly with our customers and suppliers in due course," she added.