Germany's Volkswagen (VW) is facing production disruptions at its German factories due to a chip shortage caused by geopolitical tensions.
To make this simple....the issue comes from a dispute between China and the Netherlands over Nexperia, a Dutch chipmaker owned by Chinese firm Wingtech, leading to export restrictions.
This has disrupted supplies of semiconductors critical for vehicle electronics.
VW plans to halt Golf and a SUV line model production starting next Wednesday of next week at its Wolfsburg plant.
Other sites like Emden, Hanover, and Zwickau may also be affected as chip stocks dwindle.
The German government and carmakers' association VDA have expressed HUGE concerns over the supply chain impact.
VW has warned employees of potential temporary stoppages but denies immediate halts. Basically....short-time work would start up....until the chips are procured.
This echoes the 2021 chip crisis but is tied to current US-China trade frictions.
VW shares fell 2-percent amid the news.
On news potential....a top 3 item today.
No comments:
Post a Comment