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Volkswagen Flags Possible Production Stops as Nexperia Standoff Hits Auto Chips

Dutch emergency oversight of China-owned Nexperia has prompted Chinese export curbs that are tightening supplies for carmakers.

Overview

  • Volkswagen told employees it cannot rule out near-term production impacts from chip shortages linked to the Nexperia dispute, though output has not yet been affected.
  • The Dutch and Chinese economy ministers spoke on Tuesday but reported no breakthrough to resolve restrictions on Nexperia-related exports.
  • General Motors CEO Mary Barra said Beijing’s curbs could disrupt output and that GM has a team working around the clock with suppliers to mitigate risks.
  • Europe’s auto lobby ACEA warned existing inventories of affected Nexperia chips may last only weeks while qualifying alternative sources could take months.
  • Nexperia notified customers in early October that it could not guarantee supplies, prompting warnings from Germany’s VDA and driving a surge in orders for substitute parts, including from Japanese distributors.