LONDON – Germany carmaker Volkswagen has decided to close its Wolfsburg plant on Monday for one day because of a shortage of parts, according to reports.
The reports state that Volkswagen, BMW and Porsche have all commented that suppliers are having problems as demand for German cars booms in the United States and China.
It is not clear where in the supply chain problems are occurring or whether electronic components, such as ECUs, are to blame.
Volkswagen is quoted as saying it will use the closure as an opportunity to install additional equipment and will be able to catch up with lost production. Volkswagen's Wolfsburg plant can produce up to 3,000 vehicles per day.
Meanwhile, much of the workforce get to enjoy a three-day weekend.
Reportedly Ford has also announced the temporary lay-off of some workers because of a lack of components for pick-up truck engines.
Dieter Zetsche, CEO of Daimler told Reuters: "The supply industry overall is under quite
a strain. Everyone is struggling, some successfully, others run into a
I feel the quality has always been with Germany. I've seen 20-year old BMWs still performing well on the roads - you can hardly say that for a Toyota. Japanese cars just offers a little less quality for a much lower price.
It is ironic that excess demand causes a manufacturing company to close their doors and send workers home. (Just In Time manufacturing carries with it risks associated with upstream manufacturing or transportation glitches.)
Volkswagen is not only having increasing demand in US and China but it is have the same thing in India as well, German cars are getting preference throughout the world as they are well known for their quality.
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