Daimler will reportedly slash its production and cut down working hours at its second factory in Bremen due to the lack of semiconductors, the Handelsblatt daily reported on Thursday.

According to Handelsblatt sources, carmakers as Volkswagen, Nissan Motor, Honda Motor and Ford Motor are dealing with a global shortage of chips as the demand increased after coronavirus's peak.

Volkswagen also said last month that it would need to adjust first-quarter manufacturing plans around the globe because of the shortage.