Automakers Still Worried About Global Chip Shortage
Major automakers are still concerned about the global semiconductor shortage that has curbed their production.
Volkswagen (VWAGY) Chief Executive Herbert Diess, Daimler (DMLRY) Chief Executive Ola Kallenius and Gunnar Hermann, chairman of the management board for Ford (F Get Ford Motor Company Report Europe told CNBC that it’s difficult to predict when the problem will end.
Volkswagen, Europe’s biggest car maker, has ceded market share in China thanks to the shortage, Diess said.
“We are relatively weak because of semiconductor shortages,” he said. “We are hit more in China than the rest of the world. That’s why we are losing market share.”
Intel INTC Chief Executive Pat Gelsinger said Tuesday that the semiconductor stalwart planned to build new chip-making factories in Europe, investing up to $95 billion.
The executive discussed the investment at an auto industry conference in Munich, according to The Wall Street Journal. The plan is part of a longer-term effort to combat the global chip shortage.
Intel intends to build two new chip facilities in Europe and could expand from that, bringing the total spend to as much as 80 billion euros, or $95 billion, Gelsinger said, according to The Journal.
Morningstar analyst Richard Hilgert puts Volkswagen’s fair value at $40.
“In our view, Volkswagen is successfully executing a global automotive strategy and has one of the most aggressive plans to transition to battery electric vehicles from internal combustion powertrains,” he wrote.