June 7, 2023

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

BEIJING — Volkswagen Team, the major foreign automaker in China, on Friday said the country’s total auto creation could be interrupted soon after the COVID-19 pandemic disrupted chip materials globally for some electronic components.

The pandemic has strike vehicle and parts creation globally, and creation in China, the world’s major auto marketplace, depends heavily on imported chips for electronic parts these types of as electronic command models and electronic balance courses.

“The chip provide for selected automotive electronic components has been impacted due to uncertainties brought on by the pandemic,” a Volkswagen representative informed Reuters in an emailed statement.

“This has led to a possible interruption in automotive creation, with the problem having more vital as desire has risen due to the full speed recovery of the Chinese marketplace,” the statement, which refers to China’s total auto creation and not exclusively Volkswagen’s, said.

1 senior market formal, who declined to be named, informed Reuters that he expects the lack of chips will proceed to effects China’s auto creation for a when and quite a few worldwide and area auto corporations will confront creation interruptions in the small-term but at unique stages.

China is envisioned to market around 22 million automobiles in the initially eleven months, down just three percent from the similar period a 12 months previously.

Volkswagen also said it was carefully checking the problem and had now started out coordinating with suppliers to just take appropriate countermeasures.

VW has area joint ventures with SAIC Motor Corp., China FAW Team Corp. and Anhui Jianghuai Vehicle Team Corp .