VW under pressure: Is there a risk of short-time work due to a chip shortage and a production stop?

VW under pressure: Is there a risk of short-time work due to a chip shortage and a production stop?

Volkswagen is currently under significant pressure caused by ongoing semiconductor supply problems and market declines in key regions such as China and the USA. How Mercury reported that production and manufacturing were maintained at all German locations until October 26th, which is a small ray of hope in the context of the challenges ahead.

Nevertheless, the problems appear to be enormous. In particular, production of the popular Golf model in Wolfsburg could be suspended from October 25th, which could have devastating consequences for many employees. A production stoppage for the Golf and Tiguan models cannot be ruled out. A VW spokesman emphasizes that employees have already been informed about possible short-term disruptions, but production itself is not currently affected.

Uncertainties and possible short-time work

Discussions about short-time work for several thousand employees are already underway - and this could very quickly be expanded to tens of thousands. This is a thought game that has put not only the workforce but also the federal government on alert. Negotiations on political solutions to support the auto industry are already underway daily news reported.

A worrying basis for this is the Dutch chip manufacturer Nexperia, which, despite massive problems in the supply chain, is not supplied directly by Volkswagen. Nevertheless, many suppliers use Nexperia components in their components, which creates a certain dependency relationship. The difficulties arise in a context characterized by political tensions between the USA and China and lead to export restrictions.

The federal government is concerned about delivery difficulties, which have been exacerbated by the Dutch government's takeover of Nexperia. These measures are intended to restrict technology transfers to the Chinese parent company, which directly affects the entire industry Daily Mirror raises.

Wait for future developments

It remains to be seen how Volkswagen and the industry as a whole will react to the lack of deliveries. With a market share of 40 percent in the area of ​​simple semiconductors, Nexperia is important, but the production design must remain flexible to compensate. Currently, Volkswagen still has enough material for short-term production, but the pressure could grow quickly if the situation becomes unavailable.

All eyes are on future developments. While some potential job losses are foreseeable, the most important thing to keep in mind is the impact on the entire automotive industry chain. A good exchange between industry representatives and politicians could be crucial to overcoming this crisis.