By Yilei Solar and Brenda Goh
BEIJING: Volkswagen AG, the largest overseas automaker in China, stated on Friday that China’s general auto manufacturing might be interrupted after the COVID-19 pandemic disrupted chip provides globally for some digital parts.
The pandemic has hit auto and auto elements manufacturing globally, and car-making in China, which depends on imported chips for digital elements, corresponding to digital management items and digital stability programmes.
“The chip provide for sure automotive digital parts has been affected as a consequence of uncertainties brought on by the pandemic,” a Volkswagen consultant informed Reuters in an emailed assertion.
“This has led to a possible interruption in automotive manufacturing, with the state of affairs getting extra vital as demand has risen as a result of full-speed restoration of the Chinese language market,” the assertion, which refers to China’s general auto manufacturing and never particularly Volkswagen’s, stated.
One senior trade official, who declined to be named, informed Reuters that he expects the scarcity of chips will proceed to influence China’s automotive manufacturing for some time and a number of other worldwide and native automotive corporations will face manufacturing interruptions within the short-term however at completely different ranges.
China is anticipated to promote over 22 million autos within the first 11 months, down simply 3% from the identical interval a 12 months earlier.
Volkswagen additionally stated it was intently monitoring the state of affairs and had already began coordinating with suppliers to take applicable countermeasures.
The Wolfsburg-based firm has native joint ventures with SAIC Motor Corp Ltd, China FAW Group Corp Ltd and Anhui Jianghuai Car Group Corp Ltd (JAC).
