Volkswagen is running out of chips. Shortages could halt golf production

Due to the shortage of chips from the Chinese manufacturer Nexperia, the German concern Volkswagen plans to suspend the production of Golf cars in Wolfsburg from October 29, “Bild” reported on Wednesday.

According to the daily's reports, Volkswagen authorities are currently preparing plans in case restrictions on access to chips last longer. After Wolfsburg, the following companies are at risk of production suspension: plants in Emden, Hannover and Zwickau.

The company is looking for alternatives, but chips from other manufacturers must first be thoroughly tested, and this takes time.

As reported by “Bild”, Volkswagen is currently considering shortening working hours for some of its employees.

dpa also reports that Volkswagen does not rule out suspending some of its production. “For now, production is running smoothly, but due to the changing situation, it cannot be ruled out that this may change soon,” reads the company's internal statement obtained by the agency.

The cause of the complications is the Dutch government's takeover of control of the Chinese chipmaker Nexperia, based in Nijmegen, the Netherlands, in the first half of October. Justifying their decision, the Dutch point to the threat to Europe's technological security. In response, China suspended the export of Nexperia products to Europe, including chips for the automotive industry.

German industry is seriously concerned about limited access to Chinese rare earth elements. The resulting possible reduced supplies will hit the automotive industry, but also the machinery, chemicals and electronics industries. Market disruptions can lead to downtime, bankruptcy of entire companies and threaten hundreds of thousands of jobs. (PAP)

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