Volkswagen AG VOW 5.95% warned that the global shortage of semiconductors affecting car production would worsen over the next six months, joining a chorus of auto companies that have dialed down their outlook for the rest of the year.
The warnings mark a shift for the industry after auto CEOs and industry analysts had predicted the chip crisis would bottom out in the second quarter, leading to a gradual improvement over the next six months.
“The impairment from the shortage of semiconductors has shifted and will more likely lead to impairments in the second half of the year,” Volkswagen said in a statement on Friday.
AlixPartners, a global industry consulting firm, predicted in January that the chip shortage would cost global auto makers $61 billion in lost revenue this year. But in May, AlixPartners revised its projection upward to $110 billion.