China's car production may face disruptions from chip shortage - VW says

The pandemic has hit auto and auto parts production globally, and car-making in China, the world's biggest auto market, relies heavily on imported chips for electronic parts such as electronic control units and electronic stability programmes.

"The chip supply for certain automotive electronic components has been affected due to uncertainties caused by the pandemic," a Volkswagen representative told Reuters in an emailed statement.

"This has led to a potential interruption in automotive production, with the situation getting more critical as demand has risen due to the full speed recovery of the Chinese market," the statement, which refers to China's overall auto production and not specifically Volkswagen's, said.

Volkswagen also said it was closely monitoring the situation, and had already started coordinating with its HQ and suppliers to take appropriate countermeasures.