VW’s Diess sees progress catching Tesla as chip shortages ease in second half

Europe

BERLIN – Volkswagen Group sees a strong second half of 2022 and expects progress in catching up with rival Tesla as easing chip shortages start to offset supply chain bottlenecks and rising costs, the automaker’s CEO, Herbert Diess, said.

“We are earning more than ever,” Diess said at a works meeting, adding VW is ramping up electric vehicle volumes in its biggest markets in Germany and China thanks to easing semiconductor shortages.

This should allow the automaker to narrow the VW-Tesla gap this year and meet its goal of becoming market leader by 2025 if it seizes the moment while the U.S. electric car maker burns cash on large investments, the CEO said.

“Elon (Musk) has to ramp up two highly complex factories in Austin and Gruenheide at the same time – as well as expand production in Shanghai. That is going to take strength out of him,” Diess said.

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