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VW to halt production at two German plants due to lack of Ukrainian-made parts, World News


Volkswagen will suspend production at two plants in eastern Germany that make electric vehicles as fighting has halted deliveries of key parts from western Ukraine, the company said on Friday.

The temporary shutdowns illustrate how the war in Ukraine could have unpredictable effects on the global economy, adding to supply chain disruptions that have fueled inflation. Volkswagen and other automakers have been plagued for two years with shortages of semiconductors and other components caused by the pandemic and its economic side effects.

One of the plants, in Zwickau, is Volkswagen’s largest production site for electric vehicles, including the ID.4 sport utility vehicle exported to the United States.

Volkswagen has already struggled to meet demand for its electric vehicles. The company sold 17,000 ID.4s in the United States last year, but could have sold four times as many, executives said. Volkswagen plans to start producing the car in Chattanooga, Tennessee this year.

Volkswagen announced it would close assembly lines in Zwickau, which has a capacity of more than 300,000 vehicles a year, from Tuesday to Friday. The Dresden factory, the flagship factory in the city center, will stop production from Wednesday to Friday.

A Volkswagen spokesman declined to say which parties were affected by the dispute.

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