Volkswagen Group Resolves Supply Chain Holdup Releasing Thousands Of Vehicles

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Volkswagen Group Resolves Supply Chain Holdup Releasing Thousands Of Vehicles
Volkswagen Group Resolves Supply Chain Holdup Releasing Thousands Of Vehicles

After a delay that lasted since late January, numerous vehicles from various Volkswagen Group brands are finally being released from ports and shipped to dealerships. According to a company spokesperson, VW Group anticipates that all affected vehicles will be delivered by the end of March.

The impacted vehicles come from a range of brands under the VW Group umbrella, including Audi, Bentley, Lamborghini, and Porsche. Notably, all Porsche models except for the 718 and Macan are among those affected. The root of the issue lies in a small electronic component, believed to be a microchip, which is part of a larger control unit.

This component, sourced from a supplier in western China, reportedly violated anti-forced labor laws, resulting in non-compliance with U.S. Customs regulations.

The US Customs Office In Washington DC
The US Customs Office In Washington DC

A compliant replacement component is installed to resolve the issue and release the vehicles. These replacement components are being installed as they become available.

Numerous automakers have faced supply chain challenges, particularly during the pandemic. The chip shortage, stemming from plant closures during lockdowns, was one of the most widespread issues.

Other specific incidents, such as the blockage of the Suez Canal by the cargo ship Ever Given in 2021 and recent attacks on cargo ships in the Red Sea by Houthi rebels, also contributed to disruptions.

German automakers, including some VW Group brands, encountered interruptions during the early stages of the conflict in Ukraine. Plant closures responsible for assembling wiring harnesses led to production halts at certain automakers’ facilities.

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