Volkswagen is halting production of popular models like the Golf at its Wolfsburg plant.Volkswagen is preparing to suspend production of major models, including the Golf at its Wolfsburg plant, due to shortages in semiconductor supplies, Bild reported on Tuesday, citing sources in the supplier industry.
The disruption stems from a dispute over chipmaker Nexperia, the paper said.
A spokesperson for Volkswagen said a pause in production was planned this week at the carmaker’s Golf and Tiguan series but said this was not related to the dispute over Nexperia.
Dutch computer chip maker Nexperia, which is a subsidiary of China’s Wingtech, is at the centre of a stand-off threatening global auto supply chains.
The Dutch government seized control over Nexperia on September 30, citing intellectual property concerns. In response, the Chinese government banned exports of the company’s finished products.
While not sophisticated, Nexperia’s chips are widely used in high volumes in cars, prompting concerns over possible disruptions to auto production.
Volkswagen has said it is assessing the impact of Nexperia chip restrictions on its business.
