Friday 21 May 2021 3:00 pm

Audi to idle 10,000 workers as chip shortage continues - report

German carmaker Audi will idle 10,000 staff for the second time in a matter of months due to the ongoing semi-conductor shortage.

Workers at the firm’s factories in Ingolstadt and Neckarsulm will see their hours shorten as production is slowed at the sites, German newspaper Handelsblatt reported.

The slowdown will come into effect next week. A spokesperson said that Audi had not yet taken a decision on what it would do in June.

Back in January the firm had to furlough the same number of workers due to the shortage, which has hammered car giants around the world.

Barely a marque has been untouched by the dearth, which was the result of a surge in demand for electrical items such as laptops, mobiles, and tablets during lockdown.

This week Volkswagen said it would suspend production at its plant in Chattanooga in Tennessee due to the issue.

Consultants Alix Partners have predicted that the shortfall will cost global carmakers $110bn in total this year.

And some semiconductor makers have warned that the crisis will likely last into 2022, prompting politicians to look for other means to address the issue.

Earlier this week outgoing German chancellor Angela Merkel said she was worried about Europe’s dependence on foreign-made chips.

“If a big bloc like the EU is not in position to create chips, I am not comfortable about that,” she told a summit on the future of innovation in Germany. “It is not good if you are a car nation and you cannot produce the core component.”

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