European carmakers are racing against time to avoid shutting down production lines due to the escalating chip war with China. The crisis, sparked by Beijing's ban on exports of Nexperia chips, has left the industry teetering on the brink of chaos.
According to the European Automobile Manufacturers' Association (ACEA), its members, including Volkswagen, Fiat, Peugeot, and BMW, are now working with limited reserve stocks, which are dwindling at an alarming rate. The organization's director general, Sigrid de Vries, warned that "assembly line stoppages might only be days away," urging all parties to find a diplomatic solution to the critical situation.
The shortage is causing significant disruptions in Japan as well, where Nissan is facing limited supplies until early November. Beijing's decision to ban exports from Nexperia factories in China was triggered by the Dutch government's move to take control of the Netherlands-headquartered company and suspend its Chinese CEO due to US security concerns.
The crisis is part of a broader trade tensions escalation between Europe and China, which has already hit the car sector hard. The European Union's efforts to negotiate a resolution with China are being viewed with skepticism, with experts warning that Beijing's attitude towards EU interests has changed since April.
The Dutch government's seizure of control over Nexperia on September 30th was followed by China's ban on exports from the company's Chinese arm. While most of Nexhoria's semiconductors are produced in Europe, about 70% are packaged in China before distribution. The ACEA is working with the Dutch government to negotiate a resolution that will restore Nexperia to a unified Dutch-Chinese structure.
The industry is facing an uncertain future as it struggles to find alternative suppliers for critical semiconductors, which could take months to build up capacity. De Vries warned that "the worst effects of this shortage will be felt soon" and urged all parties to work together to find a diplomatic solution before it's too late.
As the situation continues to unfold, EU officials are bracing themselves for a potentially disastrous outcome if they fail to address the crisis. With tensions running high, the EU needs a swift and effective response to mitigate the impact of this shortage on its carmakers and the broader economy.
According to the European Automobile Manufacturers' Association (ACEA), its members, including Volkswagen, Fiat, Peugeot, and BMW, are now working with limited reserve stocks, which are dwindling at an alarming rate. The organization's director general, Sigrid de Vries, warned that "assembly line stoppages might only be days away," urging all parties to find a diplomatic solution to the critical situation.
The shortage is causing significant disruptions in Japan as well, where Nissan is facing limited supplies until early November. Beijing's decision to ban exports from Nexperia factories in China was triggered by the Dutch government's move to take control of the Netherlands-headquartered company and suspend its Chinese CEO due to US security concerns.
The crisis is part of a broader trade tensions escalation between Europe and China, which has already hit the car sector hard. The European Union's efforts to negotiate a resolution with China are being viewed with skepticism, with experts warning that Beijing's attitude towards EU interests has changed since April.
The Dutch government's seizure of control over Nexperia on September 30th was followed by China's ban on exports from the company's Chinese arm. While most of Nexhoria's semiconductors are produced in Europe, about 70% are packaged in China before distribution. The ACEA is working with the Dutch government to negotiate a resolution that will restore Nexperia to a unified Dutch-Chinese structure.
The industry is facing an uncertain future as it struggles to find alternative suppliers for critical semiconductors, which could take months to build up capacity. De Vries warned that "the worst effects of this shortage will be felt soon" and urged all parties to work together to find a diplomatic solution before it's too late.
As the situation continues to unfold, EU officials are bracing themselves for a potentially disastrous outcome if they fail to address the crisis. With tensions running high, the EU needs a swift and effective response to mitigate the impact of this shortage on its carmakers and the broader economy.
The chip war between Europe and China is getting super crazy! 
Like, what's next? We're talking major production line shutdowns here... assembly line stoppages might only be days away 
. It's like the EU is being played by Beijing and it's not looking good for our car manufacturers 
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. I mean, 70% of Nexhoria's semiconductors are packaged in China... that's like a major supply chain vulnerability 
It can't be just about finding alternative suppliers; it's about restoring order to the industry. The worst effects of this shortage will be felt soon, and I don't think anyone wants that 
. We need a diplomatic solution, pronto! 
, european carmakers are literally holding their breath waiting for china to come around or else production lines will shut down completely 
and it's not just europe that's affected, japan's nissan is also feeling the pinch until early november 
. beijing's ban on exports from nexperia chips seems like a pretty weak move considering they're losing millions in revenue 
. anyway, eu officials better get their act together ASAP or risk facing a major disaster 
i dont really get how they make chips tho, is it like tiny little robots or something? 
and what's with china being all mean about exports? cant they just talk it out like normal people? 
anyway, back to the movie, have you seen that scene where leonardo dies? 
& thats true tho china's attitude has changed since april so u dont expect them 2 be all nice & friendly 
de vries is callin on eu officials 2 take action fast b4 its too late 
. We're talking about people's livelihoods here, not just some fancy gadgets 
. I mean, can we even trust China right now? 
And Europe is all "oh no, what are we gonna do?" 
. This shortage thingy is already having major disruptions in Japan and other parts of the world... it's like a domino effect 
. Can't our leaders get together and sort this out? 
And then someone remembered that they left their charger at home 
. It's crazy how reliant we are on these little things to enjoy our daily lives.
"assembly line stoppages might only be days away" omg what a disaster 
. EU gotta step up their game and negotiate with China ASAP or it's gonna be a total catastrophe 
. This shortage is no joke, it's gonna affect not just car industry but whole economy 
Just kidding (kinda). Seriously though, this is a major crisis for the car industry and beyond. The EU needs to step up its game and find a solution ASAP! 
I hope the EU can sort this out soon because the thought of assembly line stoppages is terrifying... and we don't want to see our car makers struggling for months. 
. The car industry is already so stressed out, we need some good news for once 
. Fingers crossed! 
... it's like, cars are just chillin' on the production line waiting for a crucial part that never arrives 
. I'm imagining all these cars just sitting there waiting for parts that might never arrive 
. Fingers crossed that they can resolve this crisis soon! 
. The Dutch government's move was probably a necessary evil, but China's reaction is just... wow 
. Can't they just talk it out?! 
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. We need to think creatively about diversifying our supply chains and investing in domestic production. The current approach of relying on limited reserve stocks is just kicking the can down the road - it's only a matter of time before we face the full fury of this shortage.