VW Halts Golf Production In Wolfsburg As Chip Shortage Worsens 

In 2022, European Commission President Ursula von der Leyen’s State of the Union address bragged about “toughest sanctions the world has ever seen” against Russia which she claimed at the time, “Russia’s financial sector is on life-support. We have cut off three quarters of Russia’s banking sector from international markets” and “The Russian military is taking chips from dishwashers and refrigerators to fix their military hardware, because they ran out of semiconductors. Russia’s industry is in tatters.” 

Give von der Leyen’s speech a quick listen. 

In true meme fashion, the best way to mock left-wing Brussels elites might be with a classic “How it started vs. How it’s going” – only this time, it’s not Russia in trouble, but rather von der Leyen may have spoken a little too soon. Memes are still legal in the U.S…

German tabloid newspaper Bild reports that Volkswagen is preparing to suspend production of one of its most popular models, the Golf, at its Wolfsburg factory today. The Tiguan and other models will follow this, as the worsening semiconductor shortage begins to send shockwaves across the European auto sector. 

As explained by the German media outlet, the missing Chinese chips are due to the “supply stoppage of Nexperia chips.” 

Here is more color on the situation:

In addition to the Golf and Tiguan, the Touran and Tayron are also manufactured in Wolfsburg.

The reason for the production suspension: a supply stoppage of Nexperia chips. The Nijmegen-based semiconductor manufacturer is at the center of a dispute between China and the United States. Under pressure from the US government, the Dutch government took control of Nexperia; in response, Beijing banned the export of Nexperia chips from the People’s Republic.

Nexperia also produces in Europe, but the majority of its chips come from China. VW apparently has no alternative at the moment. Semiconductors from other manufacturers would first have to be tested and certified, company sources said.

The chip crisis could affect not only VW but also the entire automotive industry and even other sectors. Spokespersons for BMW, Mercedes, and Daimler emphasized that the situation is being analyzed. Production at the companies is currently still running.

Production line stoppages will likely impact tens of thousands of employees in Europe’s largest economy. Other automakers like BMW, Mercedes, and Daimler are monitoring the situation, though their production continues.

The latest developments in the Nexperia turmoil that’s now rippling through the EU auto sector:

• Dutch Govt Suddenly Seizes Control Of China-Owned Chip Maker

• Chipmaker Nexperia’s China Arm Tells Staff To Ignore Dutch HQ, Deepening Semiconductor Split

VW has no timeline for when Nexperia chip deliveries will resume. Will the Germans soon be taking chips from dishwashers and refrigerators to build their VWs?