VW to halt Atlas, Passat output in Chattanooga amid chip shortage

Volkswagen of America said it will suspend vehicle production at its Chattanooga complex for two weeks beginning June 7 because of the global semiconductor shortage.

Output will resume June 21, the company said in an emailed statement Monday.

VW builds the Atlas and Atlas Cross Sport crossovers and the Passat sedan in Chattanooga. Last year, it sold a combined 87,362 Atlases and Atlas Cross Sports in the U.S., a 7.2 percent increase over Atlas sales in 2019. (The Cross Sport went on sale in 2020.) Meanwhile, U.S. sales of the Passat, which will end production at the plant in 2023, rose 63 percent to 22,964.

During the downtime, the automaker will focus on line and quality improvements, training and preparation for production of the ID4 electric crossover, which is scheduled to begin in 2022.