Volkswagen Halts Production Amid Semiconductor Shortage Fueled by U.S.-China Trade War
Volkswagen Group has announced production stoppages at its Wolfsburg and Zwickau plants, citing a critical semiconductor shortage traced to supply-chain disruptions involving Nexperia. The shortage stems from export sanctions and regulatory pressure on Nexperia, a company originally under Dutch control and later acquired by China-linked firm Wingtech Technology.
The Wolfsburg facility declared a planned pause, but internal sources suggest the shortage of chips for BOSCH and ZF Friedrichshafen production lines is worsening. The German auto supplier industry estimates critical parts inventory will last only about two weeks.
Analysts point to the wider context: U.S.-led trade measures against China and its supply-chain affiliates are now impacting European manufacturing. The Dutch government’s takeover of Nexperia and targeted U.S. sanctions accelerated the crisis. German industry bodies warn that automotive shutdowns could quickly spread to electronics and other sectors.
For the global mobility and tyre industry, this development highlights the vulnerability of complex supply chains. Modern vehicles increasingly rely on electronics, control units, sensors, and connectivity modules that sit on top of the tyre and mobility system. When upstream chips fail, production delays ripple down to tyres, wheels, and the aftermarket.
Editor’s View
This event serves as a stark reminder: in the tyre business, we often focus on the rubber, tread, and mechanical parts, but the broader ecosystem requires a functioning electronics backbone. As cars become smarter, connected, and reliant on microchips, tyre-and-wheel systems cannot operate in isolation.
For tyre manufacturers and suppliers, especially in India and Asia-Pacific, this means attention must shift beyond just compound and footprint to resilience in the supply chain and integration with vehicle electronics. Ensuring localised options, dual sourcing, and contingency for electronics disruption may soon become as important as specifying tread pattern or load index.
