Volkswagen halts orders for some plug-in hybrids due to supply crisis

Volkswagen will stop taking orders for several plug-in hybrid models from Wednesday, as Russia’s invasion of Ukraine destabilizes the supply chain, while chip problems begin to subside.

Orders for plug-in hybrid versions of the Golf, Tiguan, Passat, Arteon and Touareg models will be suspended in Germany until further notice and delivery of orders already placed may not take place this year, the company said on Tuesday.

“Due to this demand and limitations in semiconductor supply, we are unable to accept further orders for plug-in hybrid electric vehicle models in Germany,” the spokesperson said, adding that the crisis in Ukraine had also had an impact.

Sales of Volkswagen’s plug-in hybrids, seen by some as a transitional technology to all-electric cars, grew 61% last year to 309,500 vehicles, compared to 452,900 battery-electric vehicles.

Volkswagen said in February that its backlogs were full but that continued chip shortages meant it would need to cut some night shifts at its main Wolfsburg plant.

Still, Chief Executive Herbert Diess said he saw semiconductor supply problems ease and hoped to ramp up production by the second half of the year.

But Russia’s invasion of Ukraine has taken a toll on automakers across Europe, who rely on raw materials from Russia and wire harnesses from Ukraine to make vehicles.

Volkswagen has already announced temporary production stops at several plants in Germany and Poland and an indefinite suspension of production in Russia due to the war.

Source: CNN Brasil

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