Problems in car industry – level 2

18-05-2021 07:00

Some of the biggest automakers are having problems because there are not enough chips for their cars. Volkswagen, Honda and other companies have to make fewer cars, and it will cost them a lot of money.

A consulting company predicted that the cost will be about 110 billion dollars this year, and that it would affect 3.9 million cars.

The problem is that automakers did not want to make long-term deals with companies which made chips. Automakers were afraid that they would have financial problems.

Now, it seems that automakers will have to change their view. Some automakers are making changes, and they will use chips which are not so difficult to buy.

Difficult words: chip (a small important electrical device in a machine), consulting company (a company which advises other companies with their business), long-term (something that lasts a long time).

You can watch the original video in the Level 3 section.

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