Home / Metal News / Copper / Volkswagen Mexico plant will stop production for three weeks due to chip shortage
Volkswagen Mexico plant will stop production for three weeks due to chip shortage
May 24,2021 10:04CST
[Volkswagen Mexico plant will stop production for three weeks due to chip shortage] according to foreign media reports, Volkswagen has informed its US dealers that global chip supply shortages and "other supply chain-related problems" will lead to extended downtime at Volkswagen's large plant in (Puebla), Puebla, Mexico, and the Chattanooga (Chattanooga) assembly plant.

According to foreign media reports, Volkswagen has informed its US dealers that global chip supply shortages and "other supply chain-related problems" will lead to extended downtime at Volkswagen's large plant in (Puebla), Puebla, Mexico, and the Chattanooga (Chattanooga) assembly plant.

Volkswagen wrote to dealers last week: "Volkswagen has made great efforts to avoid additional shutdowns, but we still have to suspend production at the Puebla assembly plant in June and early July for more than three weeks. This shutdown will affect the production of Jetta (Jetta), Tuguan (Tiguan) and Taos models."

Volkswagen will release the Taos crossover next month and release 2022 models of Touguan, VW's best-selling model in the United States, which is expected to go on sale this fall.

In a letter to dealers, Volkswagen said the brand would "continue its previous plan to launch Taos in June." The company expects 8000 Taos vehicles to be delivered to dealers in June. However, as production has been affected, the company needs more time to build inventory in order to reach its target level. "

Volkswagen said in a statement: "Volkswagen Mexico is expected to further adjust the production plan, the new plan will be implemented in June, in different periods of time to adjust the three production links, after the guarantee from the supplier, production will gradually resume. We will do our best to resume production later this year. "

Earlier this month, Hein Schafer, an executive in charge of products and strategy at Volkswagen in the US, said that if the chip shortage hit Volkswagen hard in the second half of this year, it would give priority to the production of the Taos model rather than the larger, higher-priced new model, to ensure that the launch of the Taos would not be affected.

At present, Volkswagen has less than 40 days of inventory supply at its dealers. The brand reports its sales in the United States every quarter, but the sales report for the second quarter of this year will not be released until July.

Cars
chips

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn