FAW VW Audi hit hard by chip shortage

Beijing (Gasgoo)- FAW VW Audi, joint venture between Audi and FAW Group, is experiencing an intermittent production schedule as the chip shortage situation is worsening, sources close to the matter said to a local media outlet. Specifically, the A6L model was only scheduled for one production day in the entire month of September.

the A6L; photo credit: FAW VW Audi

Due to lack of main control chips, FAW Audi has decided to temporarily halt the production of the A4L, A6L, and Q5L, and are expected to restore production in the first quarter of next year, according to a production suspension notice to the joint venture’s franchised dealers.

The China Passenger Car Association's data showed that China's passenger vehicle sales were 1.575 million vehicles in June, decreasing 5.1% year on year. Wholesale volume dropped 10.2% comparing to the same month of last year to 1.531 million vehicles.

The chip shortage situation is likely to be eased in the last quarter of this year, and improving in the next year, forecasted by the China Association of Automobile Manufacturers (CAAM).

Outside of China, Audi AG is forced to short-time work until the middle of next year in Germany, as the lack of semiconductors burdened production. So far, around 16,000 of the Volkswagen AG subsidiary's employees at various locations have been affected.