Volkswagen Mexico plans production cut as chip shortages continue

Volkswagen’s Mexico unit is preparing production stoppages of two of its models next month because of an ongoing worldwide chip shortage crisis, the German automaker said on Monday.

Volkswagen will suspend production of the Tiguan, a sports utility vehicle, from May 6-16, and the Jetta, a compact car, from May 3-19, the company said.

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.