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Volkswagen's Mexico unit says it will resume production that was hit by chip shortage

Published 06/27/2021, 02:23 PM
Updated 06/27/2021, 02:50 PM
© Reuters. FILE PHOTO: Volkswagen Tiguan cars are pictured in a production line at company's assembly plant in Puebla, Mexico, July 10, 2019. Picture taken on July 10, 2019. REUTERS/Imelda Medina
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MEXICO CITY (Reuters) -Volkswagen AG's Mexico unit said on Sunday it expects to restart production of three segments from next week and in July after output was curtailed by a global semiconductor chip supply crunch.

"Volkswagen (DE:VOWG_p) de México is preparing a return to activities for its three manufacturing segments," the company said in a statement.

Automakers including General Motors Co (NYSE:GM), Ford Motor (NYSE:F) Co and Toyota Motor (NYSE:TM) Corp have cut production this year due to the shortage of semiconductor chips, which was caused by factors including a rise in demand for electronic devices during the pandemic and fast recovery in auto markets.

© Reuters. FILE PHOTO: Volkswagen Tiguan cars are pictured in a production line at company's assembly plant in Puebla, Mexico, July 10, 2019. Picture taken on July 10, 2019. REUTERS/Imelda Medina

Volkswagen said there is a general expectation that the chip supply will improve in the second half but the company added that "possible future adjustments (to production) cannot be ruled out."

Production of the Jetta, Taos and Tiguan models will be resumed separately and on different dates starting next week and during the month of July, Volkswagen said.

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