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Supply chain headaches return for Volkswagen as floods in Slovenia force production to halt throughout Europe

  • Volkswagen suspends production of key models throughout Europe as a result of supply chain worries
  • Slovenian supplier of gear rings sees factory battered by floods, causing chaos for German brand
  • Firm’s flagship Wolfsburg plant among sites to introduce temporary measures to ease new car production

Time 8:29 am, September 7, 2023

Volkswagen has been forced to reduce new car production at its German plants with supply chain issues rearing their head once more.

Parts shortages – particularly of semiconductors – have ravaged production figures in recent years but headaches have appeared to be easing of late.

Despite this, car makers are not out of the woods yet, as VW has proved with its latest setback.


The firm is having to cut production at factories across Germany after a Slovenian supplier of key engine components was hit by heavy flooding.

As a result, VW has made the decision to slash working hours at its flagship Wolfsburg plant, which is home to both the Golf and the Tiguan.

A spokesman said that the temporary measures would be in place between September 11 and September 29.


Automotive News Europe reports that production is also being cut in Hanover, where Volkswagen has a plant which builds commercial vehicles.

There will be a complete halt in production of the T6.1 van as well as all versions of the T7 Multivan, other than they plug-in hybrid. Production of the ID Buzz EV will continue as normal.

Elsewhere, staff at VW’s Emden plant have been told to expect ‘isolated shift cancellations’ as a result of the supply chain issue, while production at the its Setubal factory in Portugal – where the T-Roc is built – will be halted between September 11 and November 12.

Supplier hopes to have production back up and running by October

According to reports in Slovenia, the affected supplier is KLS Ljubno, which makes gear rings for the majority of Europe’s carmakers.

Heavy rainfall in the country saw the firm’s factory battered by both mud and flood water which engulfed the factory floor, causing around €100m- worth of damage in the process.

It is currently unclear whether other OEMs will be forced into suspending production but bosses at KLS Ljubno hope to have at least some operations live again from next month.

The firm’s CEO says that ‘sensitive instruments and electronic devices’ will need to be replaced but is hopeful to be back supplying parts from October.

A VW Group spokesman said the firm was ‘working with other suppliers to find alternatives to return to normal production in the affected plant as quickly as possible’.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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