Shanghai (ZXZC)- Some subsidiaries of GAC Group were warned by their suppliers that the auto parts supply for several models will be impacted by the faltering global economic climate amid the coronavirus spread, GAC Group revealed on Jan. 8.

Photo credit: GAC Group

Meanwhile, GAC Honda, the joint venture between GAC Group and Honda, also noted a similar warning from its suppliers.

The comment came after some local reports said in early Dec. that Volkswagen's joint ventures with SAIC Motor and FAW Group suspended production partly due to the scarcity of high-end semiconductor chips.

German auto suppliers Continental and Bosch also warned about the shortage of semiconductor components shortly afterwards. It was reportedly the 8-bit MCUs (microcontroller units) that were badly required, directly leading to the production suspension over ESP (electronic stability program) and ECU (electronic control unit), two core modules for onboard computers.

“Although semiconductor manufacturers have already responded to the unexpected demand with capacity expansions, the required additional volumes will only be available in six to nine months,” Continental said on Dec. 4, 2020. “Therefore, the potential delivery bottlenecks may last into 2021.”

The German auto giant Volkswagen Group confirmed on Dec. 18 that it was facing production slowdowns due to a “massive” supply bottleneck triggered by a lack of semiconductor components for car electronics.

The shortage would influence Volkswagen's production at its plants in China, North America and European during the first quarter of 2021, said the Wolfsburg-based carmaker. The MEB-based models under Volkswagen, Volkswagen Commercial Vehicles, Skoda, SEAT and to a limited extent Audi were impacted.