The dark days of the COVID pandemic are expected to return for the automotive industry, with fresh reports that a new wave of computer chip shortages will threaten production.
As reported by Reuters, Volkswagen has reportedly told workers that the car giant may soon face more production stoppages, due to recent events surrounding a chip manufacturing company which supplies a number of European car brands.
Last month, the Dutch government seized control of chip maker Nexperia due to claimed intellectual property concerns, which led to China halting exportings of finished chips produced by the company.
While this is yet to directly impact the car industry, a Volkswagen spokesperson told Reuters, “[…] we cannot rule out an impact on production in the short term”.
According to the publication, BMW and Mercedes-Benz are working with suppliers to secure production of more chips.
Volkswagen is soon set to experience production pauses partly or completely unrelated to the chip shortage, with two factories set to temporarily halt their lines.
A report by German publication Bild – cited by Reuters – claims insiders have said production of the Golf at the Wolfsburg factory will be paused due to the chip shortage, though a Volkswagen spokesperson said the pause – also affecting the Tiguan – is due to an unrelated matter.
On top of this, earlier this week Automotive News reported Volkswagen would stop production of the ID. Buzz and Multivan at Hanover from October 20 to 24, to allow the brand to “flexibly adapt production processes to changed market conditions”.
“We expect intense competition in the markets to continue in the coming months and are working consistently with our sales partners to improve our market position,” a spokesperson said.
The reports come after Bloomberg reported last month that production will be reduced across two of Volkswagen’s EV-only factories, impacting the ID.4 SUV and ID.7 sedan/wagon (built at Emden), and the Audi Q4 e-tron (built at Zwickau).
Discussion about this post