VW Wolfsburg Considers Kurzarbeit Amid Nexperia Chip Shortage
Germany’s largest automaker, Volkswagen (VW), is preparing for a potential production stop and kurzarbeit (short-time work) at its Wolfsburg plant, following an escalating semiconductor supply crisis linked to Nexperia, the Dutch-based chipmaker now partly controlled by the Netherlands.
According to Bild Zeitung, a growing dispute between the United States and China over semiconductor technology has crippled production at Nexperia, a crucial supplier for the European automotive industry. The ripple effect could soon halt vehicle assembly lines across Germany — starting with VW’s flagship Wolfsburg facility, where the iconic Golf and Tiguan models are built.
The Nexperia–Volkswagen Connection
Nexperia, formerly part of Philips, has become one of Europe’s key suppliers of automotive halbleiter (semiconductors). The company manufactures billions of low-cost chips annually — known in industry slang as “chicken feed” because of their ubiquity in car electronics. These chips control everything from door locks and sensors to safety systems and lighting.
The problem began when the Dutch government, under U.S. pressure, took regulatory control over Nexperia’s operations earlier this year. China, angered by the decision, responded by restricting exports of key materials and components used in chip production. As a result, parts of Nexperia’s manufacturing facilities in Hamburg, Nijmegen, and China have been forced to scale back or suspend production.
Industry sources told Bild Zeitung that the VW supply chain could start feeling the impact within 10 to 20 days, potentially triggering a Europe-wide production slowdown if the dispute isn’t resolved quickly.
VW News: Inventory Shutdown May Hide Deeper Issues
A VW spokesperson confirmed that a brief production pause at the Wolfsburg plant had been planned for inventory reasons. However, insiders revealed that the shutdown was moved forward strategically to conserve remaining chip supplies from Nexperia.
This development marks the latest setback for Volkswagen, which has already been battling weak demand in key markets like China and the United States, as well as heavy investment commitments in electric vehicles and digitalization.
VW’s Chief Financial Officer Arno Antlitz recently warned that the automaker will require at least €11 billion in new capital next year to fund essential projects and maintain competitiveness.
VW Kurzarbeit and Industry Repercussions
The Volkswagen Wolfsburg plant could be among the first to implement kurzarbeit — Germany’s government-subsidized short-time work scheme — if production halts continue. Other carmakers such as BMW and Mercedes-Benz have also acknowledged monitoring the situation closely, though they have yet to announce operational changes.
The German Automobile Industry Association (VDA), led by Hildegard Müller, issued an urgent warning:
“If Nexperia cannot resume full deliveries soon, the automotive supply chain could face severe production restrictions or even complete stops.”
This would not only disrupt Volkswagen’s manufacturing but also affect thousands of smaller suppliers dependent on Nexperia’s halbleiter components.
A Broader Semiconductor Shock for Europe
The Nexperia issue underscores Europe’s fragile dependence on global semiconductor networks dominated by Asian and U.S. players. Industry analyst Ferdinand Dudenhöffer from the CAR Institute explained that Nexperia doesn’t produce high-end chips like Nvidia or Qualcomm, but its mass-produced basic components are equally critical.
“These aren’t the chips that power AI or autonomous systems,” said Dudenhöffer. “They’re the ones that make your car doors lock, your washing machine work, and your TV turn on. When production stops, everything stops.”
The expert added that Nexperia’s production volume and cost efficiency make it a cornerstone supplier — and its disruption could ripple far beyond the auto sector.
Potential Economic Fallout
If the chip crisis deepens, analysts warn that Germany’s manufacturing sector, which employs more than 700,000 workers, could face severe strain. The auto industry, already under pressure from the energy transition and slow EV adoption, may encounter another bottleneck that impacts exports, supply chains, and consumer confidence.
A prolonged chip shortage could also stall Volkswagen’s ambitious plans for EV expansion, including the rollout of new ID-series electric models built at Wolfsburg.
What Happens Next
Both Berlin and Brussels are reportedly in talks with Dutch and Chinese officials to ease the export restrictions. Meanwhile, Volkswagen and other automakers are exploring alternative halbleiter sources to minimize disruptions.
However, industry insiders warn that full normalization could take months, as complex chip manufacturing processes cannot be ramped up overnight.
For now, Nexperia’s halted production and the looming VW kurzarbeit signal another storm ahead for Europe’s most vital industrial sector.
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