Volkswagen Mexico revealed on Sunday, June 27, that it would be resuming operations in three of its production units. This is expected to start from next week and in July after the production was forced to stop as the company is short on semiconductor parts due to the worldwide chip supply crunch.
As per Reuters, the German automaker shared the news through a statement that was released last weekend. With the announcement, three of Volkswagen Mexico’s manufacturing segments will be returning to activities and currently preparing for it now.
Chip shortage besets car makers worldwide
It is not just Volkswagen that was hit by the chip shortage that led to the shutting down of production plants that are becoming a regular thing within the industry. Since the supply of chips is still low despite the efforts of its makers to increase production, the vehicle manufacturing businesses have been suffering from losses for quite a while now.
The situation was made worse by the pandemic, and experts are saying that the end of the shortage is still far. Aside from Volkswagen, Toyota, General Motors, and Ford Motor have all been cutting productions as well.
At any rate, with the resumption of Volkswagen Mexico’s production, it will now start making Taos, Jetta, and Tigua vehicle models in the plants. These models will have different production restarting dates that will be from next week to July.
Volkswagen to stop production of combustion engine cars
Meanwhile, in a separate announcement, Volkswagen stated that it would no longer make and sell combustion engine cars by 2035. The automaker said that it has set the timeline for its exit in the engine car market in Europe.
Although it will initially start in Europe, it will later stop making vehicles with internal combustion engines in the U.S. and China. France24 reported that this information was shared by one of the company’s board members on Sunday.
The phasing out of the combustion engine cars is part of the company’s goal to go all-electric in the future. The shift to electric cars is a goal for all carmakers today as they push to take part in fighting climate change.


Gold Prices Surge 7% as Dollar Falls, Fed Rate Hike Bets Ease
China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade
US Job Growth Seen Picking Up in July
Goldman Sachs Sees US Stock Buybacks Outpacing Equity Issuance as AI Funding Rises
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise
Asian Stocks Mixed as Chip Selloff Hits KOSPI, Nikkei Ahead of US Jobs Data
Asian Currencies Steady as Markets Await U.S. Jobs Data
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Fears
Western Digital Q4 Earnings Beat Estimates as FY2027 Outlook Tops Expectations
Alibaba Plans Revenue-Sharing Model for Qwen3.8-Max AI Commercial Users
Berkshire Hathaway Cash Falls as Abel Boosts Stock Buybacks
SK Hynix, Samsung Lead Asian Chip Stock Selloff After Sandisk, Western Digital Outlook
Cloudflare Stock Jumps 15% as Earnings Beat Estimates, 2026 Outlook Raised
Shein Scales Back Vietnam Operations as US Trade Rules Shift
Oil Prices Rise as Hormuz Reopening Remains Uncertain
China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 



