Insiders reveal

VW now warns workforce of production stop

The once so brilliant automotive industry in Germany is struggling from crisis to crisis.(Bild: AFP/RONNY HARTMANN)

The Volkswagen car company will probably stop production in important plants next week. According to current plans, production of the Golf in Wolfsburg will be suspended on Wednesday, three people familiar with the plans told "BILD". Production of other models such as the Tiguan will then be halted. Work in other factories will be gradually discontinued.

Volkswagen's management is currently preparing a timetable for which factories and when production will be cut back. "The decisive factor here is how high the profit is with a model," it was said in Group circles. Initially, factories of the core VW brand will therefore be affected, followed by the production of Audi, Seat/Cupra and other brands.

More plants likely to be affected soon
As semiconductor stocks are shrinking rapidly, other plants will soon be affected after Wolfsburg. If the situation does not improve, then, according to the plans, the factories in Emden, Hanover, Zwickau and other cities will also be temporarily shut down. So far, only production at the Osnabrück site will continue, said a person familiar with the preparations.

Germany's once glittering car industry is struggling from crisis to crisis.(Bild: AFP/RONNY HARTMANN)

The suspension of production will ultimately affect tens of thousands of employees in Germany when the chip crisis takes full effect. The Group is already in talks with the employment agencies about short-time working.

VW affirms: "Planned for the long term"
VW emphasized in a statement that the planned production breaks - for example for the Golf and Tiguan - are "planned for the long term" and are related to inventory measures. A spokesperson rejected links back to the current chip crisis and explained that there were still sufficient stocks of materials for the current week.

The chip crisis is escalating: And with it, the production stop at VW is getting closer.(Bild: AFP/JENS SCHLUETER)

According to Reuters, VW is also at pains to emphasize that a stop is not necessarily caused by the Nexperia dispute - at least according to the current official presentation. Nevertheless, an internal memo warned that "against the background of the dynamic situation, effects on production cannot be ruled out in the short term". 

Breaks could last longer
According to industry circles, however, the breaks could last longer if the semiconductor problems persist - and thus the officially communicated "inventory measures" serve as a cover. The Group is therefore caught between the poles of effective public relativization and internal crisis management.