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November 17, 2021 06:04 AM

VW halts EV production for a week due to chip shortage

Output paused at German plants producing VW, Audi and Cupra battery-powered models

Nathan Eddy
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    VW ID3 production Dresden

    Production of the VW ID3 in Dresden.

    BERLIN -- Volkswagen Group is pausing production for some of its key full-electric cars because of the global semiconductor shortage.

    The automaker will not build any EVs at its plants Zwickau and Dresden, Germany, this week, a VW spokesperson told Automotive News Europe sister publication Automobilwoche.

    The VW ID3 hatchback and VW ID4 crossover, Audi Q4 e-tron and Cupra Born are built in Zwickau. The ID3 is also produced at the Dresden plant. VW's new ID5 coupe-styled crossover is scheduled to go into series production in Zwickau at the end of December.

    VW will lose output of just under 5,000 vehicles as a result of the production pause.

    Production at the two plants will be ramped up again next week, VW said.

    The reason for the production stop is a lack of chipsets for important control units.

    VW has prioritized production of its new battery-powered cars during the chips crisis and its EV factories have not had to reduce output until now.

    Production of the Golf and Tiguan combustion-engine cars in Wolfsburg has been stopped a number of times this year because of a dearth of chips.

    VW said only four production days will be canceled in Zwickau and Dresden because Wednesday is a public holiday in Saxony where they are located.

    The microchip shortage is still hammering the automotive industry and affecting nearly all automakers.

    This week Ford said it continues to lose production in Europe from semiconductor shortage, with three of four car plants reporting halts or slowdowns.

    Bosch CEO Volkmar Denner said in an interview last week that while he thinks the one-time chip supply shocks are over, structural deficits remain and capacity is still lagging global demand.

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