Automotive News Europe — 2023-08-30
Automotive Industry
Volkswagen will pause production of the T-Roc small crossover, its top seller in Europe, after heavy floods disrupted engine parts supplies.
Output of other models across the automaker's European factory network may also be hit after a supplier in Slovenia was impacted by flooding in the country.
VW will halt T-Roc output at its Autoeuropa plant in Setubal, Portugal for several weeks in September.
Floods have severely affected a Slovenian company that supplies engine parts for the T-Roc, according to an internal memo sent to the 5,000 employees at the Autoeuropa plant near Lisbon, which was obtained by the DPA news agency.
The supplier affected by the flooding was only able to deliver an order to a limited extent, a VW spokesperson told DPA.
VW Group is "working with other suppliers to find alternatives to return to normal production in the affected plant as quickly as possible."
Other plants likely will suffer production interruptions. "With the help of our worldwide supplier network, component availability has been secured so far. However, it is to be expected in the course of September that not all component and vehicle plants can be sufficiently supplied, so production losses are to be expected," DPA quoted the VW spokesperson as saying.
The impact will likely be concentrated on plants building combustion engine cars for the VW volume brand.
Deutsche Bank's analysts said on Wednesday that they expect European suppliers and other original equipment manufacturers to be affected by the same supply chain issues in the coming weeks.
Europe's bestseller
VW build 231,100 T-Rocs at the Setubal plant last year.
European sales of the T-Roc in the first seven months were 107,249, according to market analysts Dataforce. The VW brand's No. 2 seller was the Tiguan with 88,020 units sold, followed by the Golf with a volume of 85,730.
The T-Roc was Europe's best-selling car in July, ahead of the Dacia Sandero, according to Dataforce.