Volkswagen Halts Production of Two Iconic Models
The world-renowned car company Volkswagen has announced that production of its most popular models, the Golf and Tiguan, has been halted. Although the company did not cite the chip crisis as the reason for the halt in production, experts claimed that the production of the vehicles was halted due to the crisis caused by the chip manufacturer Nexperia between the Netherlands and China.
Source: Habertürk
Holland announced it had seized the Chinese chip manufacturer Nexperia, and in response, China banned the export of the company's final products.
According to a report in Habertürk, German automotive giant Volkswagen decided to halt the production of two of its models amidst the Nexperia crisis. According to the statement made by the company, production of the Golf and Tiguan models will be paused for a while. Even though the company did not attribute the halt in production to the chip crisis, German newspaper BILD claimed that the brand's production cut was related to a dispute with Dutch chip manufacturer Nexperia.
What is the Nexperia crisis? What factors have led to the halt in vehicle production?
Nexperia, a Dutch chip manufacturer subsidiary of the Chinese Wingtech, finds itself at the heart of a situation threatening global automotive supply chains. The Dutch government seized control of Nexperia on September 30th, citing concerns over intellectual property. In response, the Chinese government banned the export of the company's latest products.
Nexperia's chips are widely used in large quantities in cars, causing concerns about potential disruptions in automobile production. Volkswagen had previously stated in an announcement that it was assessing the impact of Nexperia chip restrictions on its operations.
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