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VW warns of more production cuts as Ukraine crisis hits suppliers

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HAMBURG — Volkswagen expects to temporarily idle more plants, including its main Wolfsburg factory, as fallout from shortages of key parts from suppliers in Ukraine is spreading.

The automaker said it would likely be unable to produce at Wolfsburg plant in the week of March 14.

Output at the plant, which builds the Golf, VW’s topseller, will be reduced from the week of March 6, VW said.

Other sites to be affected include Emden and and Hanover, where VW makes commercial vehicles, as well as component factories. There might be further production cuts, the company said.

Russia’s invasion is sparking repercussions for manufacturers already facing significant parts bottlenecks and fallout from the coronavirus pandemic.

Even before these latest supply-chain setbacks, automakers had been forced to curb production over the past year because of a chronic shortage of computer chips.

VW said last week it would halt production at its electric car factories in Zwickau and Dresden after a delay in getting parts from Ukraine.

The automaker has been already been forced to pause production in Wolfsburg several times over the past 12 months because of the global shortage of microchips. The company will produce fewer cars in 2022 than in 2021, due to persistent semiconductor supply troubles, Manager Magazin reported in December.

Reuters and Bloomberg contributed to this report

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