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July 1, 2021

VW Mexico resuming output

Production is resuming at VW's Mexican unit.

By Graeme Roberts

Volkswagen ‘s Mexico unit said it expected to restart production this week after output was cut by the global semiconductor chip supply crunch.

Volkswagen de Mexico is preparing a return to activities for its three manufacturing segments,” the company said in a statement cited by Reuters.

Automakers have cut production this year due to the shortage of semiconductor chips, which was caused by factors including a rise in demand for electronic devices during the pandemic and fast recovery in auto markets.

Volkswagen said there was a general expectation chip supply would improve in the second half but the company added that “possible future adjustments (to production) cannot be ruled out.”

Production of the Jetta, Taos and Tiguan models would be resumed separately and on different dates starting this week and during July, Volkswagen said, according to Reuters.

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