Volkswagen indicates shortage of Chinese chips would hit profits

New EV models are offsetting a slump in demand but Europe's carmakers are bracing for shutdowns

Volkswagen has signalled that its annual profit targets are at risk without sufficient computer chips, in the latest sign that an expected shortage of semiconductors from China could hit carmakers across Europe.

The struggling German automotive giant said a series of cost cuts and new model launches are helping to offset a slump in Chinese demand but added that forecasts are based on the adequate availability of semiconductors".