China’s vehicle output may face disruptions from chip shortage, VW says

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

The pandemic has hit vehicle and parts production globally, and production in China, the world’s biggest auto market, relies heavily on imported chips for electronic parts such as electronic control units and electronic stability programs.

“The chip supply for certain automotive electronic components has been affected due to uncertainties caused by the pandemic,” a Volkswagen representative told Reuters in an emailed statement.

“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.

Volkswagen also said it was closely monitoring the situation, and had already started coordinating with its headquarters and suppliers to take appropriate countermeasures.

VW has local joint ventures with SAIC Motor Corp., China FAW Group Corp. and Anhui Jianghuai Automobile Group Corp .

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