VW-to halt night shift production, as chip crisis continues

Feb 10, 2022 thejournalbiz

Volkswagen AG plans to cut nearly all-night shifts at its main plant in Germany as Europe’s largest carmaker continues to battle the semiconductor crisis.

VW will cut the night shift, for which workers receive extra pay, from the start of the second quarter in Wolfsburg, the carmaker said Friday.

Confirming a post seen by Bloomberg News. The move has drawn ire from labor leader Daniela Cavallo, who said a compromise on compensation must be found.

“Our colleagues aren’t responsible for the fact that order books are overflowing while we can’t make the vehicles because of the lack of semiconductors,” Cavallo said in the post.

*VW production chart

Only a fourth assembly line that handles the Tiguan and its hybrid models, the Touran and Seat Tarraco will continue to run late night shifts.

In addition CEO Herbert Diess, hinted at possible job cuts in November, to stay competitive in the face of Tesla Inc. and the shift towards EV production.

Global shortage of chips forced Volkswagen to slash output at the Wolfsburg factory

The decision to cut the night shift was made in response to repeated cancellations and the need to furlough workers, the company said.

“It is unavoidable that we adjust our shift model to maintain competitiveness and secure jobs in the long term,” said Gunnar Kilian, the board member in charge of personnel.