Volkswagen China's chip supply is tight and faces production suspension

According to relevant media reports, two joint venture plants of Volkswagen (Volkswagen) in China have ceased production one after another. SAIC-Volkswagen will cease production on December 4, and FAW-Volkswagen will also enter a state of suspension from early December. The main reason for the suspension of production of North and South Volkswagen is the insufficient supply of chips.

Xu Ying, the relevant person in charge of the Public Relations Department of Volkswagen Group (China), responded: The uncertainty brought about by the new crown pneumonia epidemic has affected the supply of certain automotive electronic components. The overall recovery of the Chinese market has also further promoted the growth of demand, making the situation more severe and causing some car production to face the risk of interruption.

Volkswagen China responded that although chip supply has been affected, the situation is not as serious as the rumors, and a solution is currently being sought.

China Fund News pointed out that the shortage of automotive chips this time will result in the failure to produce ESP (Electronic Body Stability System) and ECU (Electronic Control Unit) modules, namely on-board computers. Volkswagen is basically equipped with both. most influential.

reported that based on previous estimates of production capacity, the combined production of the two Volkswagen joint ventures in China in December exceeded 200,000 vehicles. If the chip supply problem cannot be alleviated within December, it is estimated that 15% of China's automobile production capacity will be affected, which means that in December alone, the production of nearly 400,000 vehicles in China may be affected. According to industry insiders, wafer supply will continue to be tight in the coming year. Auto parts supplier Continental also said that potential supply bottlenecks will continue until 2021.