11:40 am, October 23, 2025
Supply chain issues at Volkswagen has resulted in warnings to workers that it can’t guarantee it won’t have pause production, showing the potential impact of Nexperia chip shortages.
The Dutch government has seized control of the Chinese owned chip company earlier this month, claiming concerns over technology transfers and national security.
These microchips are relatively simple but are used in lots of household items and cars. The result of this power struggle has seen a reduction of exports from China and this could hit the automotive industry.
Yesterday, October 22, VW issued an internal memo to staff saying that production had not been affected yet.
However, a spokesperson speaking to Automotive News said that ‘we cannot rule out an impact on production in the short term’.
Sources familiar with the operation were quoted in German newspaper Bild and said production stoppages were planned from next week and would impact Golf first.
Production of Golf and Tiguan will be paused tomorrow at its Wolfsburg factory but this is due to another inventory matter and VW also told Automotive News this was planned to coincide with the autumn holidays in Germany.
The saga at Nexperia has continued with Chinese bosses issuing a letter to employees this week informing them that the company is Chinese and to disregard communications from Dutch management.
