The European Automobile Manufacturers’ Association (ACEA) is increasingly concerned by imminent disruption to European vehicle manufacturing due to halted supply of semiconductors that are essential for carmaking, the organisation says.
“While the political dispute that has led to the prohibition of Nexperia chip exports from China remains unresolved, the situation becomes more critical daily for global automotive manufacturing,” ACEA says. “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 here in Europe. The industry is currently working through reserve stocks but supplies are rapidly dwindling.”
According to the association, from a survey of its members this week, some are already expecting imminent assembly line stoppages. “Many alternative suppliers exist but it will take many months to build up the additional capacity needed to meet the shortfall in supply. The automotive industry does not have that long before the worst effects of this shortage are felt,” it adds.
“We know that all parties to this dispute are working very 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,” says ACEA director general Sigrid de Vries. “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.”
In September, the Dutch government took control of Nexperia, a key global semiconductor manufacturer, over national security concerns, citing the potential transfer of sensitive technology to its Chinese parent company (see Kallanish passim). In retaliation, China has banned Nexperia from exporting products manufactured in China.
Earlier, German carmaker Volkswagen said that, so far, it continues production despite fresh semiconductor shortages and ongoing global supply problems (see Kallanish passim). However, short-term effects on VW production cannot be ruled out.
The Japan Automobile Manufacturers Association (JAMA) said that potential semiconductor supply disruptions could have a “serious impact” on global production at Japanese automakers.
Toyota and Honda are monitoring the situation and currently have no plans to suspend production at their factories.
Svetoslav Abrossimov Bulgaria
