Volkswagen’s production of Golf and Tiguan models slowed this week due to chip supply issues from a key Netherlands supplier, raising concerns about supply chain shocks.

VW denies reports of chip shortages causing the production pause, attributing it to planned adjustments for seasonal inventory trends. Production is expected to resume by the end of the week.

The Dutch government’s emergency measures on Nexperia, a Chinese-owned semiconductor maker, have led to a ban on exports of its products to Europe’s auto industry, causing potential shortages of critical components.

The European Automobile Manufacturers’ Association warns of potential chip shortages as Nexperia is a major supplier of components for vehicle electrical systems. Finding alternatives could take months, risking production delays for automakers.

ACEA urges quick solutions to address the chip supply issue, emphasizing the need for collaboration among countries and industries to mitigate the impact on automotive production. The situation highlights the vulnerability of supply chains to disruptions.

Read more at Yahoo Finance: VW denies chip supply issues as production pauses planned