Production cuts and market losses: Carmakers struggle with lasting chip shortage

Car makers say soaring demand for chips means the auto industry could struggle to source enough of them throughout next year and into 2023 – even until 2024.

The shortage has been worsened by the move to electric vehicles, which use a lot more chips than traditional vehicles. Raw materials, too — silicon is experiencing shortages and there are also problems sourcing lithium, plastics and steel.

It’s eating into sales. Volkswagen CEO Herbert Diess says the company has lost market share in China as a result of the problem.