Volkswagen AG has told employees it cannot rule out production stoppages due to emerging supply chain issues, signalling growing pressure on Europe’s auto industry amid an escalating dispute involving Dutch chipmaker Nexperia.
In an internal communication to staff, first reported by Bild and later confirmed by the company to ReutersVolkswagen said production had not yet been affected by chip shortages but cautioned that disruptions could occur “in the short term.”
“In view of the dynamic situation, however, we cannot rule out an impact on production,” a company spokesperson said, adding that VW was closely monitoring developments.
The Bild report suggested that Volkswagen was preparing to halt Golf series production next week, followed by other models. VW declined to comment on those details, describing them as “speculative”. The carmaker would also temporarily pause output of its Golf and Tiguan models at its Wolfsburg plant on Friday for unrelated inventory reasons.
The warning underscores wider concern across Europe’s auto sector after the Dutch government seized control of Nexperia—a Chinese-owned semiconductor maker—last month, citing national security and intellectual property risks. In response, Beijing restricted exports of semiconductors manufactured at Nexperia’s Chinese plants, effectively squeezing supply to European automakers.
Industry leaders and trade associations have cautioned that chip shortages could begin hitting suppliers within a week, with the wider impact spreading across the region within 10 to 20 days, according to a Bloomberg report citing people familiar with the matter.
Hildegard Müller, president of Germany’s VDA auto lobby, warned that the situation “could lead to significant production restrictions, possibly even stoppages in the near future.”
The crisis stems from a broader geopolitical rift between China and Western economies. Beijing’s export restrictions follow similar measures targeting rare earths and battery materials critical to the electric vehicle (EV) supply chain, as the US and China prepare for high-level trade talks later this month.
Major automakers and parts suppliers—including Robert Bosch GmbH and Mercedes-Benz Group AG—have held emergency discussions with government officials to develop contingency plans. However, sourcing and qualifying replacement semiconductor components could take months rather than days, industry executives warned.
A Bosch spokesperson told Bloomberg that the company’s expert teams were “in close contact with Nexperia and other suppliers” to minimise disruption.
“Like other Nexperia customers, we are facing major challenges due to the current situation,” the spokesperson said, expressing hope for a “swift resolution among the parties involved.”
A Mercedes-Benz spokesperson said the carmaker had secured short-term chip supplies but described the overall situation as “volatile and difficult to predict.”
“We are working intensively with our partners to avoid potential supply gaps,” the company said in an emailed statement, as reported by Bloomberg.(With Agency inputs)
