Volkswagen's Mexico unit sees new output tweaks in June on chip shortage

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FILE PHOTO: Volkswagen employees arrive to the plant to attend a training before the reopening of the automotive sector as the spread of the coronavirus disease (COVID-19) continues, in Puebla

MEXICO CITY (Reuters) - Volkswagen's Mexico unit expects adjustments from June for its three production segments due to an ongoing global semiconductor chip supply crunch, the German automaker said on Friday.

"A significant reduction in the supply of semiconductor (chips) is causing several bottlenecks in many industries around the world," said Volkswagen in a statement.

Automakers including General Motors Co, Ford Motor Co and Toyota Motor Corp have cut production this year due to the shortage of semiconductor chips, which was caused by factors including a rise in demand for electronic devices during the pandemic and fast recovery in auto markets.

Volkswagen said it expects the supply of chips to remain "complex" in coming months and that it plans to gradually resume activities when the supply of chips permits it.

"We will do everything possible to recover production later in the year," said the company.

Volkswagen said it will perform maintenance work at its installations during this period.

(Reporting by Anthony Esposito; Editing by David Alire Garcia and Rosalba O'Brien)

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