This is perhaps the biggest challenge the industry has faced since its inception. This is not just a temporary situation. This is going to result in a structural reset of the entire industry, in terms of size, in terms of competitive landscape, of the product mix and also on the price.
Volkswagen has signalled that its annual profit targets are at risk without sufficient computer chips, in the latest sign that an expected shortage of semiconductors from China could hit carmakers across Europe. The struggling German automotive firm said a series of cost cuts and new model launches were helping to offset a slump in Chinese demand, but it added that forecasts were based on the adequate availability of semiconductors.