Volkswagen stops orders for some plug-in hybrids amid supply crunch

BERLIN -Volkswagen will cease taking orders for a number of plug-in hybrid fashions from Wednesday, the German automaker stated, as Russia’s invasion of Ukraine destabilises its provide chain simply as chip troubles had been starting to ease.

Orders for plug-in hybrid variations of the Golf, Tiguan, Passat, Arteon, and Touareg fashions will probably be halted in Germany till additional discover and supply of already positioned orders might not occur this yr, the corporate stated on Tuesday.

“Our plug-in hybrids are extremely wanted, resulting in excessive order backlog we're working by means of,” a spokesperson stated.

“Resulting from this demand and limitations in provide of semiconductors, we can not take any additional orders for plug-in hybrid electrical car fashions in Germany,” the spokesperson stated, including the disaster in Ukraine additionally performed a component.

An unsure regulatory atmosphere in the direction of plug-in hybrids additionally influenced the choice, Volkswagen stated, with Germany attributable to debate whether or not the car sort ought to nonetheless obtain excessive subsidies designed to encourage uptake of electrical vehicles later this month.

Volkswagen gross sales of plug-in hybrids, seen by some as a transition know-how to fully-electric vehicles, grew 61% final yr to 309,500 automobiles, in comparison with 452,900 battery-electric automobiles offered.

However their inexperienced credentials are coming beneath rising scrutiny from environmental teams and regulators who level to research exhibiting the vehicles are worse polluters than as soon as thought and shouldn't be handled equally to battery-electric automobiles when designing coverage to encourage electrification.

Volkswagen stated in February its order books had been full however that ongoing chip provide shortages meant it will want to chop some evening shifts at its primary Wolfsburg plant.

Nonetheless, Chief Govt Herbert Diess stated he noticed semiconductor provide points easing and hoped to extend manufacturing by the second half.

However Russia’s invasion of Ukraine has thrown a brand new spanner within the works for carmakers throughout Europe, which depend on uncooked supplies from Russia and wire harnesses from Ukraine to supply their automobiles.

Volkswagen has already introduced non permanent manufacturing halts at a number of factories in Germany and Poland and an indefinite suspension of manufacturing in Russia because of the disaster.

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