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News from Brussels
While the political dispute that has led to the prohibition of Nexperia chip exports from China remains unresolved, the situation becomes more critical daily for global automotive manufacturing. The resulting shortage of supply of the type of simple chips used in the control units of vehicle electrical systems is hitting automakers around the world hard, including here in Europe.
The industry is currently working through reserve stocks but supplies are rapidly dwindling. From a survey of our members this week, some are already expecting imminent assembly line stoppages. Many alternative suppliers exist but it will take many months to build up the additional capacity needed to meet the shortfall in supply. The automotive industry does not have that long before the worst effects of this shortage are felt.
“We know that all parties to this dispute are working very hard to find a diplomatic solution. At the same time, our members are telling us that part supplies are already being stopped due to the shortage.” said ACEA Director General, Sigrid de Vries. “This means assembly line stoppages might only be days away. We urge all involved to redouble their efforts to find a diplomatic way out of this critical situation”.