Categories: Europe

VW warns of more production cuts as Ukraine crisis hits suppliers

HAMBURG — Volkswagen expects to briefly idle extra crops, together with its predominant Wolfsburg manufacturing unit, as fallout from shortages of key elements from suppliers in Ukraine is spreading.

The automaker mentioned it could seemingly be unable to provide at Wolfsburg plant within the week of March 14.

Output on the plant, which builds the Golf, VW’s topseller, might be lowered from the week of March 6, VW mentioned.

Different websites to be affected embody Emden and and Hanover, the place VW makes industrial autos, in addition to part factories. There could also be additional cuts to manufacturing, the corporate mentioned.

Russia’s invasion is sparking repercussions for producers already going through important elements bottlenecks and fallout from the coronavirus pandemic.

Even earlier than these newest supply-chain setbacks, automakers had been pressured to curb manufacturing over the previous 12 months due to a power scarcity of pc chips.

VW mentioned final week it could halt manufacturing at its electrical automobile factories in Zwickau and Dresden after a delay in getting elements from Ukraine.

The automaker has been already been pressured to pause manufacturing in Wolfsburg a number of instances over the previous 12 months due to the worldwide scarcity of microchips. The corporate will produce fewer vehicles in 2022 than in 2021, as a result of persistent semiconductor provide troubles, Supervisor Magazin reported in December.

Reuters and Bloomberg contributed to this report

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