Volkswagen is implementing a reduction in working hours for its employees at the main plant in Wolfsburg in Germany over a three-week period in September as a response to a shortage of parts resulting from the recent floods in Slovenia, Reuters reported on September 4.

The recent floods in Slovenia caused extensive damage to factories across large areas, estimated to be around €5bn in total. As a result, disruptions in the European automotive supply chain are expected.

Volkswagen Group's spokesperson, Andreas Meurer, explained that the short-time work arrangement will be in effect from September 11 to September 29. Additionally, some shifts at the carmaker's Emden plant in northern Germany may be canceled.

Towards the end of August, Volkswagen temporarily shuttered a crucial factory in Portugal due to parts shortages stemming from extensive flooding in Slovenia. These floods disrupted the supply of engine components from the Slovenian supplier, KLS Ljubno.

Last month, in an internal memo circulated to approximately 5,000 employees in Portugal, Volkswagen stated that heavy rainfall in Southeast Europe had severely impacted its engine parts supplier, causing significant disruptions in production.

The shutdown in Portugal is expected to last nine weeks from September 11 until November 12. Volkswagen is actively working with alternative suppliers to expedite the return to regular production at the affected facility.

Slovenia's automotive sector holds substantial economic significance, accounting for 20% of the country's total exports and contributing 10% to its GDP. It's worth noting that nearly all European car manufacturers incorporate at least one component sourced from Slovenia in their vehicles, including prestigious brands like Rolls Royce, Bugatti, and Ferrari, as well as popular ones like Volkswagen.