VW Readies for More Disruption on Parts Shortages From Ukraine
Volkswagen AG expects to temporarily idle more plants, including its main Wolfsburg factory, as fallout from shortages of key parts from suppliers in Ukraine is spreading.
From next week, some production lines in Wolfsburg -- the world’s largest car plant -- will be suspended before a broader shutdown the following week, Volkswagen said Tuesday.
Other sites to be affected include Emden and and Hanover, where VW makes commercial vehicles, as well as component factories. There may be further cuts to production, the company said. Europe’s biggest automaker had last week already halted production in Zwickau and Dresden at plants that make electric cars because of shortages of parts including cable sets.
Russia’s invasion is sparking repercussions for manufacturers already facing significant parts bottlenecks and fallout from the coronavirus pandemic. Even before these latest supply-chain setbacks, automakers had been forced to curb production over the past year because of a chronic shortage of computer chips.
On Tuesday, VW’s Russia unit also suspended deliveries of vehicles to dealers until further notice as sanctions imposed on the nation take effect.
