VW to halt T-Roc output in Portugal

Volkswagen will pause production of the T-Roc small crossover, its top seller in Europe, after heavy floods disrupted engine parts supplies.

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

VW will halt T-Roc output at its Autoeuropa plant in Setubal, Portugal between Sept. 11 and Nov. 12, the factory workers’ commission said on Thursday.

It said 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.

Floods have severely affected a Slovenian company that supplies engine parts for the T-Roc, according to an internal memo sent to the 5,000 employees at the plant near Lisbon.

The supplier affected by the flooding was only able to deliver an order to a limited extent, a VW spokesperson told the DPA German press agency

VW Group said it is “working with other suppliers to find alternatives to return to normal production in the affected plants as quickly as possible.”

VW did not name the supplier. Slovenian press reports say the company is KLS Ljubno, a gear rings manufacturer that supplies more than 80 percent of Europe’s automotive market.

Flooding caused by storms inundated the factory floors with water and mud, causing damage estimated at 100 million euros.

The flooding affected sensitive instruments and electronic devices that will have to be replaced, KLS Ljubno CEO Mirko Strasek told Slovenian media.

Strasek said the company hopes to be able to restart some production in October.