Volkswagen cuts working hours at German site due to chip shortage

Volkswagen will cut working hours at its factory in Wolfsburg until the middle of October due to chip shortage.

The shortened working hours affect the first two weeks of October, the automaker said, adding that on October 1 that only one assembly line would be running at the plant, which is located at the automaker’s headquarters.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.