Portugal's VW plant to halt production for nine weeks due to parts shortage

Aug 18, 2023

Cars produced at Autoeuropa factory are seen parked at the Setubal harbor waiting to be shipped, in Setubal, Portugal November 23, 2018. REUTERS/Rafael Marchante/File Photo Acquire Licensing Rights

LISBON, Aug 31 (Reuters) - Volkswagen's (VOWG_p.DE) Autoeuropa factory in Portugal will suspend production between Sept. 11 and Nov. 12 due to a shortage of auto parts from a Slovenian supplier affected by recent floods in the country, the workers' commission said on Thursday.

It said in a statement that the company would temporarily lay off staff during this time, but that the situation as it stands now should not have a negative impact on workers' income.

The German carmaker warned on Wednesday it would suffer production interruptions at some plants due to the floods in Slovenia disrupting supply chains.

The commission said it would be meeting with the company on Sept. 4-5 to discuss the financial terms of the layoffs.

The assembly plant near Lisbon, which mainly produces the T-Roc compact crossover sports utility model, is one of the country's top exporters.

According to its website, Autoeuropa had nearly 5,000 workers in 2022, when it produced 231,100 cars.

Reporting by Patricia Vicente Rua; Editing by Andrei Khalip, Kirsten Donovan

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