Volkswagen sees better chip supplies in second half boosting output

Volkswagen AG expects the protracted shortage of semiconductors to ease during the second half of the year and contribute to a surge in output, offsetting months of curtailments.

VW confirmed a projection that deliveries will rise by as much as 10% this year, it said Wednesday, even after production slumped by 12% during the first three months. Strong prices and demand for high-end premium cars helped to offset lower production, it said.

“The overall situation of the world -- with Covid in China, the war in the Ukraine, semiconductors still in short supply -- this is quite a challenging environment,”