The ongoing shortage of semiconductor chips is the only factor affecting a global recovery of the car sector from the coronavirus crisis, Volkswagen CEO Herbert Diess has said.

At the Hannover Messe trade fair Diess noted demand was picking up in the US, Brazil and China while VW was also enjoying high order intake in Europe, Reuters reported.

“The only thing that is currently limiting and slowing down this recovery is the critical supply situation worldwide with regard to various semiconductor types,” Diess added.

The news agency noted the VW remarks came a day after Ford outlined another series of factory furloughs due to the shortage with five plants in the United States and one in Turkey affected.

VW is trimming Tiguan output in North America, according to media reports, and Nissan is also cutting back in the region.