VW production continues despite chip supply uncertainty
Volkswagen’s main plant will continue production next week as planned, even amid growing concerns over semiconductor shortages linked to a trade dispute between China and the Netherlands.
The uncertainty, however, extends beyond next week, which will already see reduced operations due to a German public holiday. Volkswagen is reportedly in precautionary talks with Germany’s labor agency about a potential state-backed reduced working hours scheme, though no such plan is currently in place, News.Az reports, citing Reuters.
Europe’s carmakers have raised alarms over potential stoppages. The dispute stems from the Dutch government seizing control of chipmaker Nexperia over intellectual property concerns related to its Chinese owner, Wingtech. Beijing subsequently banned exports of Nexperia products, affecting major suppliers for Volkswagen, BMW, and Mercedes.
Most Nexperia chips are produced in Europe but packaged in China, and the longevity of existing stockpiles is unclear. Industry sources suggest alternatives such as Infineon, NXP, and Texas Instruments, though switching suppliers requires time and regulatory approvals.
Volkswagen and Mercedes are actively seeking alternative sources to prevent a repeat of the production halts experienced during the COVID-19 semiconductor crisis. Meanwhile, Porsche confirmed that its production continues as normal.
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