BERLIN (Reuters) -Volkswagen’s German sites will operate as normal in the coming week as it works to shield its supply chain from a dispute over Dutch chipmaker Nexperia, but the automaker warned on Friday that some short-term effects were possible.
A source told Reuters on Thursday that production at Volkswagen’s main plant in Wolfsburg would proceed as planned next week, but that there was uncertainty beyond that.
A Chinese export ban on Nexperia’s chips has rattled supply chains in the automotive sector and other industries, prompting companies to look for alternatives amid questions over how long stockpiles can last.
UNCERTAINTY REMAINS BEYOND NEXT WEEK
Production at Volkswagen’s German sites is secure up to and including Thursday, October 30, it said in a statement. The following day is a public holiday in parts of Germany where its Wolfsburg and Zwickau plants are based.
“At all other German production sites of the Volkswagen Group as well, operations for the coming week are secured as things stand today,” a Volkswagen spokesperson said on Friday.
The group includes luxury carmakers Porsche and Audi, as well as Skoda and Seat.
“Short-term impacts on the production network of the Volkswagen Group cannot generally be ruled out,” the spokesperson said, adding that it was examining alternative sourcing options and in contact with potential suppliers.
CHIP SHORTAGES HITTING SUPPLIERS
Nexperia is not a direct supplier of Volkswagen and other carmakers like BMW and Mercedes. However, its relatively simple computer chips are used in high numbers in car parts, impacting the companies’ supplier networks more broadly.
A regional representative of Germany’s IG Metall union warned on Friday of a worsening situation.
Some automotive suppliers are already seeing “severe difficulties” and have started to announce furlough schemes for workers, Horst Ott, IG Metall district manager in the southern state of Bavaria, said at an industry event in Munich.
Parts supplier Bosch has announced a move to furlough workers at its plant in Salzgitter, Mario Gutmann of IG Metall, who sits on that company’s works council, said at the event.
Bosch had no immediate comment on the matter when contacted by Reuters.
Union representatives did not mention other companies by name.
(Reporting by Rachel More. Editing by Jan Harvey and Mark Potter)
