Volkswagen before production stop: thousands of employees at risk!

Volkswagen before production stop: thousands of employees at risk!

The semiconductor crisis is causing serious concern for Volkswagen. Despite the ongoing delivery problems, the car manufacturer was able to maintain production at its German plants up to and including today, October 26, 2025. How Mercury Reportedly, the subsidiaries Audi and Porsche are also affected, and the impending production shutdown for the main plant in Wolfsburg was averted at the last minute.

Despite this short-term stabilization, there are rumblings in the background. An official production suspension for tomorrow and Friday was justified by an early inventory, but the company is already in contact with the employment agency to apply for short-time work for thousands of employees. Experts warn that semiconductor stocks could be exhausted as early as next week.

The causes of the problems

The reason for these serious difficulties is primarily the supply situation for semiconductors, which are essential for modern cars. The federal government is concerned about the difficulties in the industry, which are exacerbated by a conflict with chip manufacturer Nexperia. This company, which in the past belonged to a Chinese group, is now struggling with an export ban from China in response to the Dutch government's intervention. Nexperia is on a blacklist in the US, which further complicates the situation for VW and other carmakers.

The supply bottlenecks that have been plaguing the automotive industry for some time could have serious consequences. Again Daily Mirror reports, there could be production stops for popular models such as the Golf and the Tiguan in the coming weeks.

Market development and further steps

But what happens next? There is currently still sufficient material available, but a longer production stop could further exacerbate the strained inventory levels. Pressure is growing on Volkswagen, particularly given declines in key markets such as China and the US. Industry representatives are warning of downside risks and are already lowering expectations for sales figures.

This also has an impact on the entire industry. Companies like Car newspaper report the threat of job cuts and short-time work in many companies in the industry. Although CEOs from VW and Mercedes report a controllable production situation, without political solutions to resolve the crisis, all signs point to a storm.

Overall, the semiconductor crisis is probably far from over. The key to the solution seems to lie in dialogue between the affected countries and companies. This is the only way to hopefully avert the partial production standstills in the automotive industry and hope for stable market conditions again.