IT may have gone largely unnoticed on this side of the channel, but a political row between the Netherlands and China is threatening car production.
Both Volvo and Volkswagen have already said there was the possibility of factory shutdowns as a result of the dispute. Other OEMs are muttering in similar dark tones.
It has gloomy overtones of 2022 when the chip supply shortage put a stranglehold on vehicle production.
And this week the European Automobile Manufacturers’ Association (ACEA) said it was becoming increasingly concerned by the imminent disruption to European vehicle manufacturing thanks to the microchip supply block.
What is behind the shortage of Nexperia chips?
A political dispute has led to the prohibition of Nexperia chip exports from China. It 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 Europe.
ACEA said the industry was currently working through reserve stocks but such supplies are diminishing. And while alternative suppliers existed, ACEA said it would take many months to build up the additional capacity needed to meet the supply shortfall in supply.
What does ACEA say about the Nexperia chip shortage?
“We know that all parties to this dispute are working 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. 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.”
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
