The chip shortage worsens, Volkswagen halts production of Golf and Tiguan models in Wolfsburg

The increasingly severe chip shortage is impacting the European automotive industry. On October 22, according to Germany's Bild, Volkswagen is preparing to suspend production of the Golf model at its Wolfsburg plant today due to a disruption in the supply of key chips, which is one of the company's most popular models. This production halt will also affect other models produced at the plant, such as the Tiguan, Touran, and Tayron, impacting the company's core product line. The direct cause of this production interruption is the chip shortage. The Wolfsburg plant is one of Volkswagen's core production bases, and the suspension involves globally best-selling models like the Golf and Tiguan, posing a serious challenge to the company's production plans and delivery capabilities. According to media reports citing internal company sources, Volkswagen currently has no viable alternatives. Sourcing chips from other manufacturers requires time-consuming testing and certification processes, which cannot immediately fill the supply gap. Volkswagen has also not provided a timeline for when the chip shortage situation might improve, leaving the production outlook uncertain. The production halt at Volkswagen could affect tens of thousands of employees and impact a pillar industry of the European economy. Other German automotive giants like BMW, Mercedes, and Daimler have stated that their production continues, but they are closely analyzing the situation, as the entire automotive industry is overshadowed by the potential spread of supply disruptions