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VW prepares staff for potential short-term plant closures amid chip supply uncertainty

© B. Naumkin
Volkswagen warns employees about possible temporary production stoppages as chip and component supply risks persist. Plants run as usual, but VW readies.
Michael Powers, Editor

Volkswagen has warned employees about the possibility of temporary production stoppages at its plants, the German newspaper Bild reported, citing an internal memo from management. The note says current operations remain unaffected for now, though the risk of disruptions to microchip and component supplies persists.

The memo indicates the group is preparing staff for potential short-term plant closures if supply conditions worsen. According to the source, these steps are precautionary rather than a prelude to layoffs or restructuring.

Earlier, Volkswagen said it was preparing a brief pause in output for two key models, while company representatives dismissed any connection to the recent dispute involving the Dutch chipmaker Nexperia, which has intensified concerns about electronics shortages in Europe. Read between the lines, this looks like prudent hedging against a volatile supply chain rather than a signal of deeper cuts.

VW did not respond to a request for comment, but sources inside the company said the situation remains fluid and depends on how the global supply chain evolves.

For now, assembly lines are running as usual. Still, the warning serves as a reminder that even Europe’s biggest carmakers remain exposed to turbulence in the chip market, where a small ripple can quickly turn into a bottleneck on the factory floor.