EU carmakers days away' from halting work as chip war with China escalates

"The chip shortage is also causing problems in Japan, where Nissan's chief performance officer, Guillaume Cartier, told reporters at a car show in Tokyo that the company was only OK to the first week of November in terms of supply. Beijing banned exports of Nexperia chips near the start of the month in response to the Dutch government's decision to take over the Netherlands-headquartered company on 30 September and suspend its Chinese chief executive after the US flagged security concerns."

"The European Automobile Manufacturers' Association (ACEA) issued an urgent warning on Wednesday saying its members, which include BMW, Fiat, Peugeot and Volkswagen, were now working on reserve stocks but supplies are dwindling. Assembly line stoppages might only be days away. From a survey of our members this week, some are already expecting imminent assembly line stoppages, de Vries said. We urge all involved to redouble their efforts to find a diplomatic way out of this critical situation, said its director general, Sigrid de Vries."

European carmakers face imminent production stoppages as semiconductor supplies from China dwindle, forcing reliance on reserve stocks. ACEA members including BMW, Fiat, Peugeot and Volkswagen report declining inventories and warn assembly lines could stop within days. Mercedes is searching globally for alternative chip sources. Nissan said supplies are only secure until the first week of November. Beijing banned exports of Nexperia chips after the Dutch government's takeover and suspension of the company's Chinese chief executive following US security concerns. UK, EU and Japanese automakers have warned that the Nexperia export ban could halt production. Rare-earth export controls add further pressure on the sector.

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