Volkswagen halts T-Roc production due to floods in Slovenia

Volkswagen will suffer production interruptions at some plants due to the floods in Slovenia disrupting supply chains, the German carmaker said on Wednesday.

VW will pause T-Roc output at its Autoeuropa plant in Setubal, Portugal, for several weeks in September. The T-Roc small crossover is the brand's top seller in Europe and the floods have severely affected a Slovenian company that supplies engine parts for the vehicle.

Flooding caused by storms inundated the factory floors with water and mud, causing damage estimated at €100m (R2bn), according to Automotive News Europe. Slovenia has been hit by devastating floods after rivers broke through their banks, leading to the deaths of at least six people.

Output of other models across the automaker's European factory network may also be hit after a supplier in Slovenia was affected by flooding in the country. 

“Efforts are being made to fully resume production at this facility. In addition, the Volkswagen Group supports the on-site cleanup work with specialist personnel,” the spokesperson said.

With the help of its worldwide supplier network, the availability of components was so far secured.

“However, in the course of September it is to be expected that not all component and vehicle plants will be able to be adequately supplied, so production losses are to be expected.”

In Portugal, Volkswagen's Autoeuropa car plant, in Palmela, announced on Monday it would suspend production from the beginning of September due to a lack of parts from the supplier affected by the floods.

Deutsche Bank's analysts said on Wednesday they expect European suppliers and other original equipment manufacturers to be affected by the same supply chain issues in the coming weeks.

The T-Roc was launched in South Africa in 2021 as compact crossover based on the Golf.

T-Rocs imported to South Africa are built at the Portugal plant but local availability won’t be affected as there is enough stock in supply, says VWSA spokesperson Andile Dlamini.

— with Reuters