Executives from car manufacturers like Volkswagen AG and General Motors Co. they were optimistic about the industry’s recovery in early fall. Demand rebounded from pandemic lows and its factories hummed again.
Then came the warnings. As in a Nov. 12 Skype call between VW’s head of logistics and officials at spare parts supplier Continental AG. The vendor said it would not deliver a number of basic components needed by VW due to the global shortage of semiconductors, people who were familiar with the call said.
Other car manufacturers received similar alerts from suppliers.
In December, parts from Continental, Robert Bosch GmbH and other suppliers had dried up so much that VW announced it would stop production of top-selling brands such as Audi and its eponymous VW brand at plants in Europe, China and North America. North. Audi, which cited chip shortages, reached 10,000 factory workers for the first time since spring closures. Ford Motor Co., Honda Motor Co. and others soon reduced vehicle production, from large vans to compact sedans.
Continental began reporting to customers in the fourth quarter on supply chain-related issues, said a company spokesman, who declined to comment on specific customer calls. Bosch declined to comment on exchanges with suppliers. VW, GM, Ford and Honda said they are closely monitoring the situation and working to limit the impact.