Volkswagen faces chip crisis after Chinese factory seized by EU state – Bild
Germany’s largest carmaker, Volkswagen, could stop production at a key plant due to a shortage of semiconductors caused by the seizure of a Chinese-owned chipmaker by the Netherlands, Bild has reported, citing anonymous sources.
The Dutch government took control of the Nexperia factory in Nijmegen late last month, citing intellectual property and security concerns. The New York Times reported last week after reviewing documents from an Amsterdam court that the move had been made following pressure from US officials. Nexperia’s parent company, Wingtech, was blacklisted by Washington in 2024 as part of an ongoing trade war with China.
Beijing responded in early October by banning Nexperia from exporting finished chips from China, which are widely used in the electronic control units of VW vehicles.
Bild reported on Wednesday that Volkswagen – which also owns the Skoda, Seat, Audi, Porsche, Lamborghini, and Bentley brands – does not currently appear to have an alternative to Nexperia chips.
Sources in the company told the paper that due to the lack of semiconductors it plans to stop production at its plant in Wolfsburg from next Wednesday. Volkswagen Golf models will be affected first, followed by other vehicles, they said.
If the situation does not improve, work could also be halted at Volkswagen’s facilities in Emden, Hanover, Zwickau, and elsewhere, a person familiar with the matter said.
According to the report, the carmaker has started talks with the German authorities about a state-backed reduced working hours scheme for tens of thousands of its employees.
Bild warned that the chip crisis could also impact other carmakers in the country. Representatives for BMW and Mercedes told the paper that they were analyzing the situation. The German automobile industry has already been suffering due to high energy costs as a result of EU sanctions on Russia over the Ukraine conflict and increased US tariffs.
A spokesman for Volkswagen's Zwickau plant told AFP that the report by Bild was “incorrect.” However, according to an internal letter seen by the media, the company acknowledged that “impact on production cannot be ruled out in the short term” due to a semiconductor shortage.
