Volkswagen AG has warned employees that it may halt production due to new supply chain disruptions, highlighting the mounting strain on Europe’s automotive sector as tensions rise in a dispute involving Dutch chipmaker Nexperia.
In a message to employees, Volkswagen stated that while chip shortages have not yet impacted production, there is a possibility of short-term disruptions in the near future.
A company spokesperson said that, given the rapidly changing situation, an impact on production could not be ruled out and emphasized that VW is closely monitoring the developments.
According to Bild, Volkswagen may suspend production of its Golf series next week, with other models to follow. However, VW dismissed the claims as speculative. Additionally, the automaker also plans to temporarily halt manufacturing of Golf and Tiguan models at the Wolfsburg facility on Friday, citing inventory-related reasons unrelated to the chip supply issue.
The warning highlights growing anxiety throughout Europe’s automotive industry following the Dutch government’s seizure of Nexperia—a Chinese-owned chip manufacturer—last month over national security and intellectual property concerns.
In retaliation, Beijing imposed export restrictions on semiconductors produced at Nexperia’s facilities in China, effectively tightening supply for European carmakers.
As reported by Bloomberg, industry executives and trade groups have warned that chip shortages could start affecting suppliers within a week, with broader repercussions spreading across the region in 10 to 20 days.
Hildegard Müller, president of Germany’s VDA automotive association, cautioned that the issue could result in major production constraints and even shutdowns in the near future.
Major carmakers and component suppliers, including Robert Bosch GmbH and Mercedes-Benz Group AG, have conducted emergency talks with government officials to devise contingency strategies. However, industry leaders cautioned that finding and approving alternative semiconductor parts could require months instead of just days.
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