Volkswagen Truck Unit Cannibalizing Chips From Finished Trucks

Volkswagen’s truck unit, Traton Group, is taking chips from unfinished vehicles to finish others, a new indication of the impact of the semiconductor shortage....
Volkswagen Truck Unit Cannibalizing Chips From Finished Trucks
Written by Staff

Volkswagen’s truck unit, Traton Group, is taking chips from unfinished vehicles to finish others, a new indication of the impact of the semiconductor shortage.

The semiconductor industry has been reeling as a result of the global pandemic. Early shutdowns and lockdowns interrupted production, while demand for laptops, tablets and gaming rigs skyrocketed. The auto industry has been particularly hard-hit, with multiple manufacturers slowing or halting production, or shipping vehicles without their full complement of fuel economy chips.

In the case of the Traton Group, a Volkswagen subsidiary, the company is pulling semiconductors from unsold finished vehicles and putting them in unfinished vehicles that have been sold, according to Insider.

The company blamed a recent COVID-19 outbreak in Malaysia, a hub for automotive semiconductor manufacturing.

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