VW warns disrupted chip supplies could impact China's overall auto production

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Volkswagen AG, the biggest foreign automaker in China, said on Friday that China's overall auto production could be interrupted after the COVID-19 pandemic disrupted chip supplies globally for some electronic components.

FILE PHOTO: A Volkswagen electric ID car is seen during a construction completion event of SAIC Volkswagen MEB electric vehicle plant in Shanghai, China November 8, 2019. REUTERS/Aly Song/File Photo

The pandemic has hit auto and auto parts production globally, and car-making in China, which relies on imported chips for electronic parts, such as electronic control units and electronic stability programmes. “This has led to a potential interruption in automotive production, with the situation getting more critical as demand has risen due to the full-speed recovery of the Chinese market,” the statement, which refers to China’s overall auto production and not specifically Volkswagen’s, said.

China is expected to sell over 22 million vehicles in the first 11 months, down just 3% from the same period a year earlier.

 

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