Chip shortage casts shadow over China’s automobile industry recovery

SHANGHAI (Reuters) -A global shortage of semiconductors is hitting autos production in China, jeopardising hopes the world’s biggest car market might spearhead a recovery in the sector, industry executives warn.

Automakers around the world have had to adjust assembly lines due to the shortages, caused by manufacturing delays that some semiconductor makers blame on a faster-than expected recovery from the coronavirus pandemic.

Volkswagen AG, China’s biggest foreign automaker which hopes to sell over four million vehicles in the country, said the situation had not improved in the second quarter.

The German group’s China chief, Stephan Woellenstein, told reporters on Sunday it was hard to gauge how much production Volkswagen might lose week to week, or even month to month because of the chip shortage.