📊Executive Summary

Volkswagen has indicated that its annual profit targets are at risk due to an expected shortage of semiconductors from China, particularly affecting its production lines. The company has reported that the shortage is not due to technical or capacity issues but rather political factors, including export bans on chips from Nexperia, a Chinese-owned producer. This situation could lead to production line shutdowns across European carmakers. As VW navigates a slump in demand from China, it is also facing significant costs from US trade tariffs. The article highlights the urgent need for procurement teams to monitor semiconductor availability and consider alternative sourcing strategies to mitigate risks associated with the geopolitical landscape....