Daimler and Volkswagen cut working hours, citing chip shortage

Daimler (DAIGn.DE) and Volkswagen (VOWG_p.DE) are cutting working hours at some of their plants as the carmakers continue to suffer from a shortage of semiconductors that has already hampered production this year.

Daimler is reducing working hours this week at its Bremen and Rastatt plants, a spokeswoman said, adding that the situation was volatile and it was not possible to make a forecast on the impact.

Volkswagen will cut working hours at its Wolfsburg factory next week, a spokesman said.

Chief Executive Herbert Diess last month said Europe’s top carmaker was in “crisis mode” over the shortage, adding that the impact would intensify and hit profits in the second quarter, which ends in two weeks.