Despite The Shortage Of Chips, VW Can Continue To Produce Next Week

Volkswagen will not need to reduce production in Germany next week despite the chip shortage at Nexperia. The company, which owns Audi and Porsche, had warned of potential restrictions due to a Chinese ban on exports from the Dutch chip maker but now assures that production will continue as planned until next Thursday. “Given the […]

Despite The Shortage Of Chips, VW Can Continue To Produce Next Week

Volkswagen will not need to reduce production in Germany next week despite the chip shortage at Nexperia. The company, which owns Audi and Porsche, had warned of potential restrictions due to a Chinese ban on exports from the Dutch chip maker but now assures that production will continue as planned until next Thursday.

“Given the rapidly developing situation, we cannot rule out short-term consequences for production. Volkswagen is currently investigating alternative supply options to minimize any potential impact on the supply chain,” a spokesperson said Friday morning.

French company Valeo, a supplier to Volkswagen, BMW, and Stellantis, among others, is also working to replace Nexperia’s chips. This has already been successful in 95 percent of cases, according to CFO Édouard de Pirey.

The company’s thoughts go back to 2021, when the unexpectedly rapid recovery from the coronavirus crisis caused a chip shortage. “We are implementing the same measures as then to optimize our deliveries and work on replacement components. We are prepared for the coming weeks,” said De Pirey, who, with Valeo, supplies driver assistance systems, among other things.

Nexperia has been facing supply problems since the Dutch government took control of the company, which was previously managed by a Chinese parent company. China subsequently halted the export of Nexperia products, leading to chip shortages in the global automotive industry. An average car contains hundreds of Nexperia chips.

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