Volkswagen Secures Production in German Plants Amid Nexperia Chip Dispute

Web Editor

October 24, 2025

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Background on Nexperia and its Impact

Nexperia, a Dutch chip manufacturer, is currently embroiled in a dispute that has caused ripples across various industries, including the automotive sector. The Chinese government’s ban on exporting Nexperia chips has left companies scrambling for alternatives amid uncertainty about the longevity of existing chip supplies.

Volkswagen’s Assurance of Production Continuity

Despite the ongoing dispute, Volkswagen has confirmed that production in its German plants will proceed as scheduled until October 30. This includes key facilities in Wolfsburgo and Zwickau, which will remain operational, although the following week remains uncertain due to a German holiday.

A Volkswagen spokesperson stated, “Production operations for the upcoming week are secure across all German production plants of the Volkswagen Group, as things stand today.” The group encompasses luxury car manufacturers Porsche and Audi, along with Skoda and Seat.

Acknowledging Potential Short-term Impacts

However, the spokesperson acknowledged that short-term repercussions on the Volkswagen production network cannot be ruled out. The company is actively exploring alternative supply options and engaging with potential new suppliers to mitigate these impacts.

Key Questions and Answers

  • What is the nature of the dispute involving Nexperia? The dispute stems from a Chinese export ban on Nexperia chips, causing supply chain disruptions across multiple industries.
  • How is Volkswagen affected by this dispute? Although Volkswagen has assured production continuity in its German plants until October 30, there is uncertainty about the week following due to a German holiday. The company acknowledges potential short-term impacts on its production network.
  • Which other brands fall under the Volkswagen Group? The group includes luxury car manufacturers Porsche and Audi, along with Skoda and Seat.
  • What measures is Volkswagen taking to address the chip shortage? Volkswagen is examining alternative supply options and engaging with potential new suppliers to counteract the effects of the chip shortage.