Chip shortage casts shadow over Munich car show

It's the car industry's first major global event since the health crisis began.

And in Munich this week the big names are busy unveiling new vehicles - nearly all of them electric.

Volkswagen grabbed some headlines with its ID LIFE.

That's a preview of its upcoming compact electric city car.

VW hopes to put it on sale in 2025 priced at less than $24,000.

But electric cars require high-tech electronics, and that's a problem right now.

Because the global chip shortage is hanging over this event.

Automakers from General Motors to Toyota have had to slash output as a result of scarce supplies.

Rising raw material costs are also an issue.

But on Monday Renault chief Luca De Meo struck a defiant note:

"Of course we are worried and you know, we observe all the things you mentioned: raw materials, chips, all that stuff. But we are there to fight and to move the company, the economy and the countries on."

Late last month Renault said it would extend some partial plant stoppages until the end of the year.

And news of supply problems just keeps coming.

On the eve of the Munich show Daimler said shortages could linger into 2022 and even the year after.

Though the Mercedes maker said the severity of the problem should ease off.

Arch-rival BMW and major parts supplier Bosch both said they expected problems to continue into next year.

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