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Nexperia's Export Ban Exposes Critical Weaknesses in Automotive ...
2025-10-24 22:55:09
Automotive
Business

Nexperia's Export Ban Exposes Critical Weaknesses in Automotive Supply Chains

The Nexperia crisis highlights significant vulnerabilities in global supply chains, particularly in the automotive sector. A recent trade dispute between China and the Netherlands has led to a ban on exports from Nexperia, disrupting essential chip supplies.

This situation echoes the challenges faced during the COVID-19 pandemic, revealing a lack of preparedness for similar disruptions. Major automotive manufacturers like Bosch, Volkswagen, and BMW are already feeling the impact, with some implementing furloughs to manage the fallout.

Industry leaders stress the urgency of enhancing local production capabilities, advocating for 'Made in Germany' to ensure reliability and faster response times. The German government is also stepping in, proposing measures to lessen dependence on foreign suppliers and mitigate future crises.

Related news on that topic:

Nexperia Dispute Threatens Auto Production Amid Global Chip ... Shortage

The automotive industry is grappling with a severe chip shortage exacerbated by geopolitical tensions. A recent dispute between the Dutch government and Nexperia, a major semiconductor supplier, has intensified supply chain challenges. Nexperia's chips are vital for many automotive manufacturers, including industry giants like Tesla and Bosch. As production warnings emerge, German carmakers, including Volkswagen and BMW, face significant risks, including potential factory shutdowns. Job losses in the German automotive sector are projected to reach 51,500 by 2025, underscoring the crisis's economic impact. Concurrently, the decline in China's rare-earth exports adds another layer of complexity. Automakers are increasingly investing in domestic suppliers to mitigate risks, while the situation reflects broader tensions between China and Western nations over technology and trade. The evolving dynamics could reshape not only production capabilities but also the future landscape of the automotive industry.

European Automakers Face Production Risks Amid Nexperia Supply ... Crisis

The automotive industry is currently grappling with a severe supply shortage, primarily due to issues surrounding the Dutch chip manufacturer Nexperia. The Association of the Automotive Industry (VDA) has raised alarms about potential production halts as companies like Volkswagen and Tesla face critical shortages of essential semiconductors. The Dutch government’s intervention has complicated matters, stripping Nexperia’s Chinese owner of control and raising concerns about technology transfer. As a result, European automakers are at risk of significant disruptions reminiscent of the pandemic-era chip crisis. Industry experts warn that without immediate solutions, production lines may come to a standstill, jeopardizing jobs and economic stability. Meanwhile, companies are scrambling to find alternative suppliers to mitigate the crisis, underscoring the urgent need for strategic responses to enhance semiconductor resilience within Europe.

Read 2 more recent news on this topic

The press radar on this topic:

openpr
23. Oktober 2025 um 13:23

Nexperia crisis: Nothing learned from Corona - secure the supply chain now

Nexperia crisis underscores global supply chain vulnerabilities. Nexperia's production halt due to Netherlands' takeover and China's export ban threatens automotive industry production stoppages. This scenario is reminiscent of the COVID-19 pandemic, highlighting a failure to learn from past disruptions. The German industry association VDA warns of potential production stoppages and manufacturers are considering short-time working arrangements. Precoplat's Managing Director, Andreas Brueggen,..
n-tv.de
24. Oktober 2025 um 12:29

Concerns over Nexperia Crisis: IG Metall Anticipates Short-Time Work in the Automotive Industry - n-tv.de

IG Metall anticipates short-time work in the German automotive industry due to the supply shortage of semiconductors from Nexperia. The chip shortage is causing difficulties for the industry, and some auto suppliers are already facing significant challenges. By the middle of next week, contingency plans will be visible, whether they work or not. Bosch has already registered for short-time work.
Al Jazeera
24. Oktober 2025 um 16:24

Bosch warns production at risk as Nexperia dispute hits auto suppliers

Bosch, a German car parts supplier, is at risk of production stoppages due to a trade dispute between China and the Netherlands over Dutch chipmaker Nexperia. China has banned exports of Nexperia's finished products, which are widely used in car parts, leading Bosch to prepare for furloughs at its Salzgitter plant. Other major auto suppliers such as Volkswagen, BMW, and Mercedes are also affected by the dispute, with some already announcing furlough schemes for workers.
Frankfurter Rundschau
24. Oktober 2025 um 14:00

Next Crisis for the Economy? First German Market Leader Already Has to Implement Short-Time Work

The crisis in the chip sector seems to be spreading. Germany's largest car manufacturer, Bosch, and Volkswagen have already applied for short-time work. The reason for this is a trade conflict between China and the USA, in which Nexperia, a Dutch chip manufacturer with Chinese ownership, is involved. The federal government has announced mediation and further measures to reduce dependence on foreign countries.
CW

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