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Volkswagen Faces Production Standstill in Germany Due to IT Problem

 


There was a major IT outage at several of Volkswagen Group's German plants on Thursday, which halted production at most of them and caused the global production network to become unresponsive. This incident has affected VW's entire group, which includes Porsche and Audi, and has shown the vulnerability of VW's network infrastructure, which is very apparent as the incident began early on Wednesday morning. It highlights the vulnerability of VW's network infrastructure.    

According to a report by the German news agency DPA, the company has revealed that the IT infrastructure problems that occurred over the night have been resolved and production is beginning again. 

The company said that there was no indication that the disruption was caused by anything external. It has been confirmed that the entire Volkswagen group, including Porsche AG (P911_p.DE) and Audi brands, has been affected, the top carmaker in Europe said. 

According to a spokesperson for Audi, the production at the division has also been affected, although details about the extent of the impact are still being analyzed, however. It is already evident that the carmaker faces a diminished demand at its all-electric Zwickau plant, where a long-standing three-shift system that has been in place for decades may have to change due to muted demand for battery-powered cars. 

Reuters reported Volkswagen had a "problem" with the IT components at its global headquarters in Wolfsburg, Germany after the company reported an unspecified "IT malfunction".  Aside from Emden, Osnabrueck, Hanover, Dresden, and Zwickau, the outage affected several other German sites, including factories in Braunschweig, Kassel, Chemnitz, and Salzgitter, which manufacture components for the company. 

"There has been an issue with the line since 12:30 p.m. (CET) and the trouble is currently being investigated. There could be implications for the plants that produce cars," according to the group. It has been reported that some Volkswagen offices have been taken out of operation as a result of the incident. 

Volkswagen maintains that, as a result of the ongoing analysis, an external attack on its internal network is unlikely, and that computer systems and email networks are currently offline. There is still no known cause for this widespread "system malfunction", but efforts are still being made to fix the problem and bring the company's activities back on track. As a result, the company's activity is now back on track. 

VW recently announced that it would be cutting 269 temporary jobs at its Zwickau electric car plant in the early part of this month, according to AFP. As the electric vehicle segment gains momentum, the 10-brand group -- whose marques include Audi, Seat and Skoda -- faces intense competition, especially in China, one of the key markets. 

According to Volkswagen, their deliveries of cars to China in the first half of 2023 decreased by 1.2 per cent compared to the previous half of 2021. Several Volkswagen offices have been left offline due to this incident, which has caused a malfunction of computer systems and email networks. 

The company says that, based on its ongoing analysis, it is unlikely that an external attack will affect its internal systems. There are still no definitive answers as to the cause of this widespread "system malfunction," but efforts are ongoing to resolve it and return the company's activities to normal. 

The new IT incident will likely affect Volkswagen's quarterly results since the automaker has already been struggling with lower-than-expected production levels at its all-electric Zwickau plant. Over the past few years, Volkswagen has dealt with both stolen customer contract information and leaks of confidential information about factory robots built for automobiles. 

Recent reports suggest that the company (along with Audi, as well as other 25 brands) is a "data privacy nightmare on wheels" and is being criticized by Mozilla. Although the German manufacturer claims that the incident was not caused by an external attack, The Register suggests that it could have been the result of Russia's efforts to undermine nations that support Ukraine. 

There has been a pattern of DDoS attacks against German infrastructures and organizations by Russian hacktivists, or even Kremlin-sponsored cyber-crackers.