The ongoing chip crisis poses a serious threat to the German automotive industry, as production stoppages loom for major players like Volkswagen and BMW. The root of the issue lies with the Dutch chip manufacturer Nexperia, which has faced significant export restrictions due to a government takeover and tensions with China.
The Association of the Automotive Industry (VDA) has raised alarms, indicating that the fallout could resemble the disruptions experienced during the COVID-19 pandemic. In response, companies like ZF and Bosch have initiated task forces to explore alternative suppliers.
Meanwhile, the Dutch government is in negotiations with China to resolve the trade dispute, aiming to restore the supply chain. As crisis talks unfold in Brussels, the stakes remain high, with thousands of jobs at risk should production halt in the near future.
This situation underscores the fragility of global supply chains and the interconnectedness of international trade.
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