Volkswagen to keep up production next week despite chip shortages

German carmaker Volkswagen does not plan to halt production at its German factories next week, the auto giant said on Friday, after raising fears that production could be forced to halt due to the ongoing chip crisis at its supplier Nexperia.

“Supply issues at Dutch chipmaker Nexperia currently have no impact on production at Volkswagen vehicle manufacturing plants in Germany,” a Volkswagen spokesperson said.

“As things stand, production at all other German production sites of the Volkswagen Group is also guaranteed for the coming week,” he said, adding that this also applies to the Audi and Porsche subsidiaries.

This comes after Volkswagen announced potential production halts on Wednesday, saying they could be implemented at short notice.

Nexperia is experiencing supply problems after the Dutch government took control of the company, which was previously run by a Chinese parent company.

In response, China halted the export of Nexperia products, such as chips for the automotive industry.

Earlier on Friday, German Economy Minister Katherina Reiche said Berlin had contacted China’s trade minister to push for a resumption of chip exports in a bid to resolve shortages.

Volkswagen’s Christian Vollmer, a board member responsible for the brand’s production, said he was convinced on Thursday that production shutdowns could still be avoided. He told business newspaper Handelsblatt that the automaker was in talks with a potential replacement supplier that could make up for the loss of Nexperia semiconductors.

A spokesperson added that Volkswagen was in close contact with potential suppliers.