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

BEIJING — Volkswagen Group, the most significant international automaker in China, on Friday claimed the country’s all round auto production could be interrupted following the COVID-19 pandemic disrupted chip provides globally for some electronic parts.

The pandemic has hit automobile and areas production globally, and production in China, the world’s most significant auto marketplace, depends seriously on imported chips for electronic areas these kinds of as electronic command models and electronic security systems.

“The chip offer for certain automotive electronic parts has been affected because of to uncertainties triggered by the pandemic,” a Volkswagen representative explained to Reuters in an emailed statement.

“This has led to a possible interruption in automotive production, with the situation acquiring much more important as need has risen because of to the whole velocity recovery of the Chinese marketplace,” the statement, which refers to China’s all round auto production and not specially Volkswagen’s, claimed.

One particular senior sector formal, who declined to be named, explained to Reuters that he expects the shortage of chips will continue to impression China’s car production for a although and quite a few global and regional car companies will deal with production interruptions in the limited-time period but at distinctive ranges.

China is anticipated to offer over 22 million vehicles in the 1st eleven months, down just 3 per cent from the similar period a calendar year before.

Volkswagen also claimed it was intently checking the situation and experienced by now begun coordinating with suppliers to get ideal countermeasures.

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