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VW plans production stop at main plant in Wolfsburg and short-time work

Die Welt

Germany

Tuesday, October 21


ARCHIV - 04.12.2024, Niedersachsen, Wolfsburg: Das VW-Kraftwerk am frühen Morgen hinter dem Mittellandkanal. (Aufnahme mit langer Belichtungszeit) (zu dpa: VW-Chef Blume: Kommen beim Sparen gut voran) Foto: Moritz Frankenberg/dpa +++ dpa-Bildfunk +++
Chips are becoming scarce: VW announces production adjustments – initially for the Golf in WolfsburgSource: Moritz Frankenberg/dpa

According to a report, VW plans to reduce production of the Golf and Tiguan, among other things, at its main plant in Wolfsburg. This apparently also includes preparing for short-time work for thousands of employees.

Due to a supply disruption of computer chips from the supplier Nexperia, Volkswagen plans to shut down production at its main plant in Wolfsburg, according to Bild. This will affect, among other models, the Golf model, the newspaper reported on Tuesday, citing industry insiders.

However, upon inquiry, the automaker emphasized that the suspension of production for the Golf and Tiguan was planned and not related to the Nexperia case. Meanwhile, Bild magazine reports that company representatives have already contacted the employment agency to request short-time work for parts of the workforce. Materials for production could run out as early as next week.

Initially, a few thousand employees would be affected, and later, tens of thousands could be put on short-time work. According to the newspaper, this depends entirely on how quickly the crisis can be overcome.

The Dutch government recently took control of Nexperia to prevent the transfer of important technologies to its Chinese parent company, Wingtech. Previously, the government in Beijing had banned the export of certain parts of Nexperia's chips. Although these semiconductors are mostly produced in Europe, they are shipped to the People's Republic for packaging and further processing.

The European Automobile Association (ACEA) subsequently raised the alarm. Domestic vehicle manufacturers' inventory levels were only sufficient for a few weeks. Volkswagen had stated at the time that Nexperia was not a direct supplier. However, components were incorporated into components that VW received from suppliers.

Nexperia is the world's largest supplier of simple semiconductors such as diodes and transistors. The company also develops advanced chips for battery management. Its Chinese parent company, Wingtech, has been on a US government blacklist since 2024 due to alleged national security risks.

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