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A price premium for pure used battery electric vehicles (BEVs) is leaving many buyers reluctant to make the switch, when faced with a cheaper, second-hand diesel car.

Alternative fuel vehicles, which include mild and plug-in hybrid models as well as pure electric cars, only account for between 5-8% of Aston Barclay’s used stock.

However, for some fleet customers it can be as high as 10-12% of their total inventory, according to Martin Potter, Aston Barclay’s managing director – customer.

He says fleet vendors are realising that, while they may be currently remarketing three-year-old internal, combustion engine (ICE) vehicles, their product mix will quickly change with the majority of new fleet registrations becoming electric.

Recent research from Centrica Business Solutions showed a healthy appetite for fleet electrification, with UK businesses planning to spend £16 billion on plug-in vehicles in 2021 – a 50% uplift on last year.

It revealed that UK firms spent £10.5bn on EVs and on-site charging points during the year to March 2021 but are now planning £15.8bn of investment in the same area over the next 12 months.

Two fifths (40%) of those questioned said they had increased the total number of EVs within their fleet between April 2020 and March 2021.

Incentives for fleets and company car drivers have helped drive the record-breaking EV registrations, thanks to new benefit-in-kind (BIK) tax rates, introduced last spring.

“We’re all working very hard to understand the market and, most importantly, to understand where the consumers are coming from,” Martin Potter, Aston Barclay

Overall, there were 108,205 battery electric vehicles BEVs sold in 2020, according to the Society of Motor Manufacturers and Traders (SMMT), significantly more than the 66,879 plug-in hybrid electric vehicles (PHEVs) registered during the year.

In terms of non-plug-in mild hybrids, the SMMT data shows that 110,087 cars were registered.

Two-thirds (67%) of the registrations for BEVs and PHEVs (68%) were from fleets, last year.

Potter said: “The hybrid stock we’re selling is 44 months old, on average, 48,000 miles and the average price is around £13,000.

“That is very similar to the typical fleet stock and it’s at a price the consumer can work with, whereas you then look at the battery electric that has an average age of 20 months, 18,000 miles and £25,000 average sale price.

“The gap between what somebody has to pay for that and a diesel or even a hybrid equivalent is currently so vast it’s hard for them to justify, but that will change.”

Dylan Setterfield, head of forecast strategy at pricing experts Cap HPI, recently told Fleet News that the higher residual values (RVs) in absolute terms enjoyed by EVs are not simply because they have higher list prices; low volumes also have an impact.

RVs are supported by carefully managed remarketing strategies by the manufacturers, keeping used examples in the dealer network or negotiating bulk deals for niche second-hand use,

However, he expects the current price premium of used BEVs and PHEVs will gradually reduce over time thanks to increasing volumes.

Values of older used models may also come under pressure if newer models come with better technology or a cheaper list price.

“We’re all working very hard to understand the market and, most importantly, to understand where the consumers are coming from,” said Potter.

Covid helps drive ‘time to sell’ reduction

After welcoming back buyers to auctions halls in April, Potter told Fleet News that the return to physical sales had proved worthwhile, with conversion rates increasing and those in attendance accounting for a higher proportion of final bids. “The physical buyers were definitely buying more cars,” he said. 

Aston Barclay has been employing an “omni-channel” sales approach to remarketing its vehicles, with the mix dependent on the sector its serving.

Fleet cars, for example, are sold online but buyers are also able to bid in person in the auction hall. Cars aren’t driven through the auction hall, however, with buyers instead able to view stock prior to the sale.

Stock where condition can be more of a potential issue, such as dealer part-exchange, is being driven through the auction hall, while OEM stock is dealt with offsite and completely virtually.

Potter said: “I’m really pleased we’ve got this different approach for different sectors and without the pandemic I think it would have been really hard to do.

“The pandemic has forced people to get used to the different technologies and different ways of remarketing.”

He continued: “It’s a really exciting time for the business. More and more people are looking for diversity in getting vehicles to market to maximise their values, but most importantly is less days to sell, especially in the fleet and finance sectors.”

Once a vehicle comes off the fleet, the leasing company is no longer receiving a monthly rental so time to sell is crucial, particularly when it’s a depreciating asset.

“They want the money back in the bank so they can finance another one,” explained Potter. “We’re now able to use new technologies, products and services that can all lend themselves to reducing the number of days to sell.

“For example, we’ve got some customers using our app-based appraisal tool three or four weeks before the car’s contract is due to be terminated, which allows us to start remarketing it before its defleeted. That’s going to reduce days.” By Graham Hill thanks to Fleet News

Confusion Over The Government’s EV Plans.

The Government’s long-awaited transport decarbonisation plan has been delayed after it lacked the ambition to meet targets, including the 2030 ban on new diesel and petrol vehicles.

The plan was originally due to be published before the end of 2020 and was then pushed back to spring 2021.

It will now miss that deadline after transport minister Rachel Maclean told MPs in a Westminster debate that she was not happy with the draft plan.

She said: “I am not satisfied with the draft because it does not meet the ambition we need in order to reach those incredibly challenging targets.”

She told the debate in Westminster Hall that she was unable to give a publication date, but the Department for Transport (DfT) intended to publish the plan “soon”.

The plan is the first time the UK will lay out its approach to decarbonising every form of transport and is an essential part of achieving the legal requirement for net zero emissions by 2050 and the Climate Change Committee’s sixth carbon budget.

Maclean told MPS that the Government is developing three key policy documents over the course of 2021.

“The first is a delivery plan that will set out key Government commitments, funding and milestones… for the 2030 and 2035 phase-out dates,” she said.

“It will deal with the question whether we will have a zero-emission vehicle mandate.”

An infrastructure strategy will set out the “vision and action plan” for the charging infrastructure roll-out that is needed to achieve the phase-out date successfully and accelerate the transition to zero emission transport.

“As part of this strategy we are working with local authorities, charge point operators and other stakeholders to ensure that our future charging infrastructure is practical, accessible, reliable and achievable, alongside outlining all the key roles and responsibilities for all actors in the EV charging sectors,” continued Maclean.

“It is clear that we need more charge points everywhere and this Government will set out how that will take place.”

It will also bring forward the Green Paper on the UK future CO2 emissions regulatory framework, which will set out how the UK will phase out petrol and diesel cars and vans and support the interim carbon budgets. This will include “consulting on which vehicles exactly can be sold between 2030 and 2035”.

Maclean also said that the Government intends to “support people to charge their cars at home”.

She explained: “We are working closely with the Ministry of Housing, Communities and Local Government at the moment and we have consulted on plans to introduce a requirement for every new home to have a charge point, where there is an associated parking space. We will publish our response soon.

“We aim to lay regulations in Parliament in 2021 – this year – that will make England the first country in the world to introduce mandatory charge points in new homes, again cementing our position as the global leader in the race to net zero.”

The Government also intends to tackle the issue of public charge points not working.

When questioned by Labour’s shadow minister for green and future transport Kerry McCarthy whether there would be legislation requiring charge point operators to meet certain reliability standards, Maclean said: “We already have those powers in legislation and we intend to use them.”  By Graham Hill thanks to Fleet News

Councils outside London will be given powers to enforce so-called moving traffic offences from December, the Government has confirmed.

The powers were initially outlined by the Prime Minister, Boris Johnson, last year, in an effort to increase walking and cycling in England.

The new enforcement powers will allow local authorities, rather than the police, to enforce against moving traffic offences such as disregarding one-way systems or entering mandatory cycle lanes.

The change has already taken effect in London, where reports suggest it has significantly reduced police workload on traffic offences, allowing officers to prioritise more important matters, while also improving enforcement.

The Government is proposing that motorists be issued with a warning for a first offence, and fines for subsequent offences.

Speaking at this week’s Traffex conference, transport minister Baroness Vere said: “Local authorities will need the tools to manage roads in the way that best serves local needs, which may vary in different parts of the country, and it is this ethos of localism that lies behind our decision to give more powers to local authorities under the Traffic Management Act.”

A freedom of information request made by the RAC to all local authorities that currently have the power to enforce these offences in England and Wales – the London boroughs and Cardiff Council – found revenue from issuing penalty charge notices (PCNs) to drivers increased by 25% between 2016/17 and 2018/19.

The enforcement of moving traffic offences such as stopping on a yellow box junction, making an illegal turn or driving down a ‘no entry’ road resulted equated to £58.2m in 2018/19 for authorities – £11.5m more than in 2016/17 (£46.7m).

RAC spokesman Simon Williams said: “It’s right that councils outside London have the ability to enforce known rule-breaking hotspots, but we’re fearful that some authorities may be over enthusiastic in using their new powers for revenue raising reasons, to the detriment of drivers.

“While the Government has pledged to give councils advice on how best to let drivers know enforcement is taking place, what’s really needed is clear guidance on making sure enforcement is always carried out fairly.

“Drivers who blatantly ignore signage or highway rules should expect penalties, but there are instances which are not always clear-cut.”

Williams says that large yellow box junctions, for example, can be particularly problematic to get across without stopping, often due to their design.

“It’s important common sense is applied rather than instantly issuing penalties to drivers,” he said.

“The first thing councils should do is review the road layout at these junctions to make sure drivers can negotiate them at all times, but especially at busy periods.”

The RAC also wants councils to closely monitor the number of penalty charge notices issued, as very high volumes in one particular location is likely to indicate something is wrong, either with signage or the design of the road.

“In these circumstances, we feel it would be wrong for drivers to have to pay up,” said Williams.

“More broadly, there’s a good argument for authorities to issue warning letters in the first instance rather than fines.

“We also believe drivers should be able to appeal easily if, for example, they receive a penalty for slightly moving into a yellow box to allow an emergency vehicle through.”  By Graham Hill thanks to Fleet News

The following warning applies to all drivers although the report was aimed at company car or fleet drivers.

Company car and van drivers are being urged not to drive for longer than two hours without taking a break, after new research revealed a worrying trend in tired driving.

The survey, from road safety organisation IAM RoadSmart, found that one-in-10 drivers had momentarily closed their eyes because they were so tired.

The same number (10%) of drivers also admitted that they had hit the rumble strip, while two-in-five (40%) had turned down the heating or rolled down the windows in order to stop them from being tired.

Neil Greig, IAM RoadSmart director of policy and research, said: “Fatigue behind the wheel is a very serious problem, perhaps more concerning than previously thought of.

“The potential carnage that could result from even one accident doesn’t bear thinking about.”

More than half of drivers said they were very concerned about fatigue when driving long distances, while encouragingly around a quarter of drivers had pulled over for a rest or a coffee as the road safety experts advise.

“Driving a long distance needs pre-planning to ensure there are plenty of available rest places and to make sure there’s enough time to complete the journey if delays are encountered,” explained Greig.

“Never drive for longer than two hours without a break and take particular care if driving when you would normally be asleep. This is even more important as the country reopens after the pandemic and not all facilities may be available yet.

“Drivers can then concentrate on staying alert behind the wheel rather than staving off tiredness by trying to reach their end destination without adequate rest breaks.”  By Graham Hill thanks to Fleet News

Bosch has opened a €1 billion (£860m) semiconductor fabrication facility in Dresden, Germany – the largest single investment the company has ever made.

Production in Dresden will start as early as July – six months earlier than planned, with the first semiconductors made in the new plant to be installed in Bosch power tools.

For automotive customers, chip production will start in September, three months earlier than planned.

With the automotive sector facing a global semiconductor shortage and fleets facing increased SMR costs and lead times due to the microchip crisis, Bosch says that the new factory will be an important part of the semiconductor manufacturing network.

Harald Kroeger, Bosch board member with responsibility for the Mobility Solutions, says automotive microchips are the “ultimate discipline” in semiconductor technology.

“This is because in cars these small building blocks have to be especially robust,” he explained. “Nowhere else are they subjected to such strong vibrations and extreme temperatures.”

He says that demand for automotive semiconductors is rising. As recently as 1998, the value of semiconductors in a car was 170 euros (£145), by 2023 it will have exceeded 600 euros (£514).

However, chairman of the board of management of Robert Bosch GmbH, Volkmar Denner, stressed that the new semiconductor factory would not solve the chip shortage, but would help “contribute” to the increasing demand.

“We can provide some help, but we certainly cannot resolve that overall shortage,” he said.

Every car- and van-maker is being impacted by the computer chip crisis, with some delivery times for cars lengthening from three to six months, and many new vans not expected to be delivered until 2022.

Vehicle production lines have been temporarily halted, focus has been shifted to high demand vehicles and some options are not being offered.

Furthermore, with the auto industry facing tough new emissions targets, lower emitting models have been prioritised in some cases.

Bosch says the semiconductor shortage could last well into next year.  By Graham Hill thanks to Fleet News

The European Commission has fined BMW and Volkswagen Group €875,189,000 (£751m) for colluding with Daimler on the development of NoX treatment technology.

Daimler was not fined, as it revealed the existence of the cartel to the Commission.

According to the European Commission’s report, Audi, BMW, Daimler, Porsche and VW held regular technical meetings to discuss the development of AdBlue systems, also known as selective catalytic reduction (SCR)-technology.

During these meetings, and for more than five years, the car manufacturers colluded to avoid competition on cleaning better than what is required by law despite the relevant technology being available.

Daimler, BMW and Volkswagen group reached an agreement on AdBlue tank sizes and ranges and a common understanding on the average estimated AdBlue-consumption. They also exchanged commercially sensitive information on these elements.

Executive vice-president of the Commission, Margrethe Vestager, said: “The five car manufacturers possessed the technology to reduce harmful emissions beyond what was legally required under EU emission standards. But they avoided to compete on using this technology’s full potential to clean better than what is required by law.

“So today’s decision is about how legitimate technical cooperation went wrong. And we do not tolerate it when companies collude. It is illegal under EU Antitrust rules. Competition and innovation on managing car pollution are essential for Europe to meet our ambitious Green Deal objectives. And this decision shows that we will not hesitate to take action against all forms of cartel conduct putting in jeopardy this goal.”

Green group Transport & Environment (T&E) believes that in the wake of Dieselgate, this latest scandal shows car manufacturers “cannot be trusted” to put people’s health and the climate before profit.

Julia Poliscanova, senior director for vehicles and emobility at the organisation, said: “Carmakers cannot be trusted to clean up cars. First they cheated on emissions tests, then they colluded to delay cleaner vehicles even though they had the technology. Only an EU target to switch to 100% emissions-free cars by 2035 will be enough to decarbonise by mid-century and avoid climate catastrophe.” By Graham Hill thanks to Fleet News

The ‘Relax’ programme covers new and used Toyota and Lexus vehicles, with the scheme applying retrospectively to second-hand models.

Toyota and Lexus have launched an industry-leading warranty programme that provides up to 10 years’ cover for new and used cars, vans and pick-up trucks.

The ‘Relax’ scheme adds a year’s warranty to a vehicle each time it is serviced at a Toyota or Lexus dealer. There is no extra cost for the programme, servicing costs are unchanged, and vehicles are eligible until they are 10 years old or have covered 100,000 miles.

Relax comes with every new Toyota or Lexus, and also applies retrospectively to models already on the market, as long as they are under 10 years old and have covered fewer than 100,000 miles. This means if you were to go out today and buy a nine-year-old, 90,000-mile Prius, you could add a year’s manufacturer warranty to it simply by getting it serviced at a Toyota dealer.

The scheme also applies to vehicles that have been maintained outside the Toyota and Lexus dealer networks: bringing a car back in for a main or interim service will activate Relax for a year. Vehicles used commercially, including taxis, are covered, as are all powertrain types, including hybrids, electric cars and the hydrogen Toyota Mirai. 

A number of manufacturers offer warranties that extend beyond the once-traditional three-year period; Renault and Hyundai provide five years’ cover, while Kia gives a seven-year/100,000-mile warranty.

Toyota previously offered a five-year/100k-mile policy, and Lexus a three-year/60k one. Relax replaces both these with a three year, 60,000-mile warranty as standard, and this can be extended each time a vehicle is serviced at a main dealer.

The scheme works in the same way for vehicles with longer service intervals: the Toyota Proace van, for example, has a two-year maintenance schedule, and so has two years of warranty added each time it is serviced. Toyota’s previous warranty scheme, introduced in 2010, remains valid, with Relax beginning at the end of the five-year period.

Toyota’s price promise, which sees dealers match service quotes from independent garages within 10 miles, is also unchanged. Rob Giles from Toyota GB called Relax “game-changing”, while adding that it brings “compelling business benefits” for the firm.

Why is Toyota doing this?

Relax is good news for consumers, so is likely to attract new buyers in and of itself. Toyota also expects a “significant growth” in dealer footfall, upping servicing income and tempting more people with new cars. Residual values are also likely to increase, and with PCP deals paying off depreciation, over time this could theoretically have a positive impact on new-car finance.

Plus the firms’ exposure to warranty costs is proportionally low: our Driver Power data shows 9.6 per cent of Toyota and 11.1 per cent of Lexus owners had issues with their cars; the industry average was 17.34 per cent. By Graham Hill thanks to Auto Express

‘Self-driving’ vehicles fitted with Automated Lane Keeping System (ALKS) could be permitted on the roads later this year, in the wake of a government consultation on the safe use of the technology.

The UK government has set out how vehicles fitted with ALKS technology will be allowed to use the roads. It said it would work to facilitate a data sharing agreement between insurers and manufacturers, and to ensure manufacturers provide sufficient driver information to help them understand how to safely use automated vehicles.

A separate consultation on changes to the Highway Code to clarify rules on safe use has been launched, proposing to add a new section setting out expectations for users of automated vehicles.

Driverless cars expert Ben Gardner of Pinsent Masons, the law firm behind Out-Law, said: “The introduction of ALKS is likely to be the first of many gradual steps as we see increasing levels of autonomy in road vehicles. However, at this stage, it will not be possible for drivers to reap the full benefits of these advanced driving features as other existing driving laws will also need to be reviewed and, if deemed appropriate, amended or withdrawn altogether.

“Arguably the current speed restrictions could limit how frequently this technology is deployed and prohibitions on using handheld devices whilst at the wheel will remain in force. As a result, in the short term, drivers will not be fully released from their driving responsibilities and free to do other tasks,” Gardner said.

“However, as regulatory reviews continue and new advanced driving features come to market, we will begin to see a phased evolution of what road vehicles are technically and legally capable of doing – together with the benefits of increased productivity and, more importantly, reduced congestion and accidents,” Gardner said.

ALKS controls a vehicle’s movement without the need for driver intervention and is designed to keep a car in its motorway lane at speeds of up to 37 miles per hour – for example when there is heavy, slow-moving traffic.

The system can only be activated through a deliberate action by the driver and when the driver is in the car’s driving seat and available. It can also only be used on roads where pedestrians and cyclists are not present.

The government launched a consultation into the use of ALKS on motorways last summer and received 186 responses (45 page / 2.4MB PDF) from individuals and organisations, including from manufacturers and insurers.

Although respondents felt that drivers needed to understand ALKS capabilities and limitations to use it safely, only a minority proposed mandatory training. Respondents said manufacturers had a responsibility to ensure drivers understood how to use vehicles, and there was widespread support for a public awareness campaign to educate all road uses about ALKS.

The proposed new section in the Highway Code on automated vehicles sets out the requirements for drivers. It notes that drivers are not responsible for automated vehicles when they are driving themselves, and drivers do not need to pay attention to the road in these circumstances. However, they do need to pay attention to instructions about when it is appropriate to engage the self-driving function.

Drivers should remain in the driving seat if a vehicle is designed to require them to resume driving after being prompted to, and are still responsible for the vehicle being in a roadworthy condition.

Drivers will be permitted to perform other activities if they are using vehicles that can safely drive themselves. The government said it intended to consult later this year on amending the regulation concerning the use of screens in vehicles, and would consider changes to the use of screens by drivers of automated vehicles.

The government is also planning to commission research to scope the technical requirements needed for enabling motorway-based automated driving systems to operate at higher speeds and change lanes. By Graham Hill thanks to Pinsent Masons

Police forces have recovered more than 1,000 stolen catalytic converters and arrested more than 50 people.

The joint operation to tackle catalytic converter theft, codenamed Goldiron, was coordinated by the British Transport Police (BTP).

Police forces joined experts from the Joint Unit for Waste Crime (JUWC), led by the Environment Agency, Smartwater Group, and motor industry, to carry out synchronised enforcement action, intelligence-led site visits, forensic marking and educational events.

Over a five-day period last month, officers and partner agencies made 56 arrests, visited 926 sites, stopped 664 vehicles, recovered 1,037 stolen catalytic converters and 297 items of stolen property; and identified 244 offences.

During the visits and checks, officers searched for stolen metal and examined trader’s financial records to ensure they were complying with the 2013 Scrap Metal Dealers Act.

The JUWC also coordinated a series of waste site inspections to ensure businesses held environmental permits and met other legal requirements.

Furthermore, catalytic converter marking demonstrations were also held to educate and encourage drivers to protect their vehicles. More than 1,610 vehicles were forensically marked by officers and partner agencies.

National Police Chiefs’ Council lead for metal crime, BTP Assistant Chief Constable Charlie Doyle, said that the “positive results” are testament to why it’s vital to share information and specialist knowledge to disrupt those operating in this area of crime.

“By taking a multi-agency approach, we are maximising our ability to identify those who are involved in catalytic converter theft, making it harder for them to sell stolen metal and gain from their criminal activities,” he added.

Catalytic converters clean harmful gases before they exit a vehicle’s exhaust pipe and are stolen for the precious metal they contain. These metals have surged in value recently, leading to organised crime networks to commit more offences.

A national conference took place in November last year to create a cross-agency plan focussed on prevention and detection and this was the second week of action that has taken place since.

National Police Chiefs’ Council lead for vehicle crime, Cheshire Police Assistant Chief Constable Jenny Simms, said: “Policing and law enforcement agencies will continue to focus on catalytic converter theft and ensure that this low risk/ high-reward crime is relentlessly targeted, and offenders are brought to justice.”

The RAC and Ageas say that vehicles parked during lockdown are being targeted by criminals stealing catalytic converters for their precious metals.

There has been a “marked rise” in the theft of catalytic converters since the start of the first lockdown just over a year ago, says Ageas Insurance.

Three-in-10 of all theft claims reported are now related to catalytic converters. Before the lockdown catalytic converter theft only accounted for around one-in-five.

Toyota is working with police and Smartwater to covertly mark the catalytic converters on more than 100,000 cars in an attempt to deter thieves.

The initiative is costing the car maker more than £1m and will be provided to existing Toyota owners for free.

Police say that reports of catalytic converter theft should be made as soon as possible to increase the chances of detection.

People are encouraged to report any suspicious activity to the police by calling 101, or 999 if an offence is in progress. If you spot something at a railway station, contact BTP by texting 61016 or calling 0800 40 50 40.  By Graham Hill thanks to Fleet News

Toyota is working with police and Smartwater to covertly mark the catalytic converters on more than 100,000 cars in an attempt to deter thieves.

The initiative is costing the car maker more than £1m and will be provided to existing Toyota owners for free.

Rob Giles, Toyota (GB) director of Customer Services, said: “Catalytic converter theft is a very serious problem in the UK and the effects on victims of this crime are emotional as well as financial.

“We’re pleased to be starting this initiative, working closely with the police, not only to help them with their efforts to combat this crime but also to send a clear message to criminals that if they choose to target a Toyota or Lexus car there is now a far higher chance of getting caught.”

Toyota hopes that the marking programme will dissuade rogue scrap metal dealers who are happy to pay cash for stolen converters, now that the risk of being caught is greater than before.

Thieves are targeting the catalytic converters in older hybrid models, like the Toyota Prius, because the catalyst in a hybrid has a lower work load than in a non-electrified vehicle, meaning it is in better condition.

In more modern Toyota and Lexus cars the catalysts are of a different design and are not typically targets for theft as a result.

According to Ageas Insurance, three-in-10 of all theft claims reported are now related to catalytic converters. Before the Coronavirus lockdown, catalytic converter theft only accounted for around one-in-five.

Catalytic converters contain a honeycomb coated with precious metals such as platinum, palladium and rhodium which help to filter harmful gases from the vehicles’ exhaust systems.

The RAC says that when the global value of these metals increase it usually leads to a spike in thefts. Prices of rhodium hit a record highs earlier this year, up more than 200% since March 2020.

Toyota is offering the Smartwater marking free to all Toyota and Lexus owners, who simply need to call their local Toyota or Lexus retailer to arrange a visit.

It has also issued 20,000 Smartwater kits to police to support their local anti-catalyst theft initiatives. The company is also working with the AA, Toyota’s road-side partner, so its patrols can point customers to where they can get a free kit.  By Graham Hill thanks to Fleet News

The semiconductor shortage has forced Daimler and Volkswagen to cut the working hours at some of their plants.

Every car- and van-maker is being impacted by the computer chip crisis, with some delivery times for cars lengthening from three to six months, and many new vans not expected to be delivered until 2022.

Daimler is reducing working hours this week at its Bremen and Rastatt plants, a spokeswoman told Reuters, 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.

Volkswagen chief executive, Herbert Diess, said last month that it 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.

Ford was among the first auto motive companies to highlight the potential impact of chip availability on first quarter production, earlier this year.

“The global semiconductor shortage is affecting automakers around the world as well as other industries, including consumer electronics companies,” a Ford spokesman explained.

“Ford is concentrating on how to best use our allocation of semiconductors to deliver high-demand vehicles to customers.”

The manufacturer has reported it could lose half of all planned production in quarter two of 2021.

The factory in Turkey that builds the Ford Transit for the European market was closed until June 13.

The Focus production line in Germany will be on limited production for much of next month, while closures of varying length will impact Galaxy, Kuga, Mondeo, S-Max and Transit Connect production until July 31.

Closures will also impact the Fiesta and Puma production lines in Germany and Romania respectively, although to a much smaller degree.

The Ford spokesman said it was looking at a number of factors to manage the chip shortage, including overall consumer demand by nameplate, the individual vehicle’s contribution to its fuel economy commitments and its ability to make up for the short-term production loss later this year.

Stellantis – parent company of the merged PSA and FCA Groups – saw eight of its 44 global plants idled at some point in Q1, with production losses due to chip shortages down around 190,000 units or 11% of planned output.  By Graham Hill thanks to Fleet News