Mercedes-Benz Secures Short-Term Supply of Chips Amid Nexperia Disruption — 3rd Update

By Dominic Chopping

Mercedes-Benz said it secured a short-term supply of chips in response to disruption at Dutch semiconductor manufacturer Nexperia, but warned of challenges for the entire automotive industry.

The Dutch government last month wrested control of Nexperia from its Chinese owner Wingtech Technology, citing the need to preserve "technological knowledge and capabilities" necessary for Europe's economic security.

China fired back by prohibiting the export of certain Nexperia products manufactured in China.

Nexperia's chips are used in everything from lights to vehicle electronic control units.

"The entire industry is affected," Mercedes said. "Thanks to good partnerships with our suppliers, the digitalization of many of our processes, and the implementation of lessons learned from the chip crisis, we have secured supplies for the short term."

The German luxury automaker said it is closely monitoring developments and is in contact with relevant stakeholders. Still, due to the high degree of complexity and volatility, it is difficult to make reliable forecasts, it added.

"We are working intensively with our partners to avoid potential supply gaps," it said.

German peer BMW said it is in close contact with suppliers and is assessing the situation to identify potential supply risks early and take appropriate measures if necessary.

"Production at our plants continues as scheduled," it said.

Elsewhere, French automaker Renault said it set up a monitoring unit and is in daily contact with suppliers as they seek alternative solutions to ensure production continuity.

"At this stage, the potential impact remains limited and current launches will not be affected, but the entire sector remains vigilant," a spokesperson said.

Renault noted that the issue is also being addressed at the European Automobile Manufacturers' Association level, which has intervened with the Chinese Ministry of Commerce to emphasize its critical importance for the automotive industry.

A Volkswagen spokesperson said Nexperia isn't a direct supplier to the group, although some Nexperia parts are used in vehicle components supplied by the carmaker's vendors.

"At this time, our production is unaffected," the spokesperson said. "However, given the evolving circumstances, short-term effects on production cannot be ruled out."

The company said it is in close contact with stakeholders to identify potential risks early, and is taking measures to ensure its supply chain is resilient.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 22, 2025 08:18 ET (12:18 GMT)