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Volkswagen Group will stop output in Nizhny Novgorod, Russia, where VW and Skoda cars were being assembled under contract with GAZ Group, a trade union said, citing the company’s message to the plant’s staff.
Volkswagen’s biggest plant in Wolfsburg, Germany, is struggling to meet strong demand for the Golf model due to shortages of battery cells for hybrid versions and semiconductor components, the company’s labor leader told a German newspaper.
Volkswagen is in talks with its main suppliers about possible claims for damages due to a shortage of semiconductors, a company spokesman said.
Volkswagen said it would further cut car production at its Wolfsburg plant in northern Germany due to a shortage of semiconductors that has hit the industry worldwide.
Volkswagen Group returned to profitability in the third quarter, helped by a surge in demand in China, despite an overall drop in global vehicle deliveries during the COVID-19 pandemic.
Volkswagen Group has begun regular production of ID.4 crossover, the second model in a planned family of electric vehicles that will be built and sold around the world.
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