Volkswagen Halts Golf Production Amidst Escalating โคChipโค Supply Crisis
WOLFSBURG, โฃGermany – Volkswagen โhas announced โa halt to production of its iconic Golf model at itsโ Wolfsburg plant, beginning October 29, as a critical shortage of microchips disrupts its manufacturingโ operations. The suspension of production for one ofโ the world’s best-selling vehicles for the past โค50 years โunderscores โtheโ widening impact of global supply chain vulnerabilities,stemming fromโฃ geopolitical tensions.
the immediate cause of the production stoppage centers on restricted supplies from Nexperia, a Dutch chipmakerโข owned โคby a Chinese company. Last month, theโ Dutch government, responding to nationalโ security concerns raised โby the U.S. โgovernance under Donaldโข Trump, โinvoked a Cold War-era law โgranting it effective controlโ over Nexperia. China subsequently prohibited Nexperia from exporting chips widely used in automotive electronic controlโ units,โ directly impacting Volkswagen’sโฃ ability to โcontinue Golf production.
This disruption extends beyond the Golf, with Volkswagen issuing an internal warning to employees about potential production halts for models including the Tiguan, Touran, and Tayron. Plants in Emden, Hanover, and Zwickau are also anticipated to be โฃaffected as existing chip โขinventories dwindle.
Volkswagen is reportedly in discussions with the german government regarding the implementation โขof โข Kurzarbeit, โa temporary workโค scheme thatโค allows employees toโข work reduced hours while receiving state support for lost wages, in anโ effort to avoid layoffs. News of theโ potential disruptions caused VW’s โshare price to fall by overโ 2 percentโ in Frankfurt trading on Wednesday.
“But it’s โnot easy to find otherโฃ suppliers at short notice,” noted stefan Bratzel, an automotive industry expert at the Center for โAutomotive Management in Germany. He added that manufacturers are actively “attempts to switch to other suppliers,” but any alternative semiconductors and microchips require rigorous internal โขtesting โand certification before integration into production.