VW AG: Shutdowns in Malaysia affecting global production, could get better by end-Sept

The worsening Covid-19 situation in Malaysia has impacted the global automotive scene. Earlier we reported that supply disruption at Bosch’s supplier has adversely affected a number of manufacturers, including Tesla, Nio, and Nissan.

This time around, at the ongoing Munich International Auto Show, Volkswagen CEO Herbert Diess has confirmed to CNN that Malaysia’s struggle with Covid-19 has affected their suppliers.

Also Read: Worsening Covid-19 situation in Malaysia leads to plant stoppage for Ford Germany

According to Diess, “It has gotten worse already. We expected that we would have relief after the summer break, which didn't happen because in Malaysia, we had really quite significant problems with Covid. Some of our suppliers, the back ends of our suppliers are mostly based in Malaysia, and three plants were hit hard.”

Also Read: China to reduce production to 900k units for August due to chip shortage from Malaysia

Out of VW’s host of suppliers, one of them is Bosch, which has “back-end” manufacturers located here in Malaysia. One such manufacturer is believed to be STMicroelectronics, located at the Tanjung Agas Industrial Zone in Muar. The plant currently employs more than 3,000 staff. Out of which, hundreds have been infected by the virus and 19 staff have passed away.

Also Read: Bosch: Disruption in supply from Malaysia affecting Nio and Tesla

Diess added, “We think that we will overcome this situation towards the end of the month, and then we should see relief. Semiconductors will be on short supply probably for several months.”