Germany's Automotive Industry Threatened by Semiconductor Crisis and Trade Policies

The automotive industry in Germany faces significant challenges due to a semiconductor crisis linked to Nexperia, a manufacturer influenced by Chinese trade policies. The Dutch government has taken control of Nexperia to prevent its relocation to China, fearing a disruption in supply chains critical for major companies like Volkswagen and BMW.

Economists predict a potential GDP decline of up to 0.5 percent, creating a ripple effect across various sectors. Calls for an economic policy shift emphasize the need to bolster competitiveness and restore industry trust.

As geopolitical tensions escalate, the implications for production and employment in the automotive sector are increasingly concerning.