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Volkswagen reins in production due to ongoing chip shortage

German car giant Volkswagen will slash production at its main plant due to ongoing problems with the ...

👤 H K Badal20 Aug 2021 5:56 PM GMT
Volkswagen reins in production due to ongoing chip shortage
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German car giant Volkswagen will slash production at its main plant due to ongoing problems with the global supply of computer chips, a spokesman told AFP on Aug 20.

Following the summer holidays for workers in Germany, work on the assembly line at the company's facility in Wolfsburg will be "limited" and will have to "adapt to the supply situation", the spokesman said.

Next week, cars will only be produced during the early shift at the factory, while the rest of production will be halted.

Shortages of semiconductors are set to continue, according to the carmaker.

The renewed scarcity is in part the result of "outbreaks of COVID-19, particularly in Malaysia, which have led to factory closures for semiconductor producers", Volkswagen said.

However, the company said it hoped "as far as possible" to make up the setbacks in production over the course of the second half of the year.

Earlier this week, the Volkswagen-owned car brand Audi also said that it would be delaying the resumption of production on some of its lines in Germany due to the "volatile" supply situation.