Auto Manufacturing Is at Risk as Chip Shortage Worsens, Industry Group Says
By Dominic Chopping
A trade group representing the auto sector in the European Union said a critical chip shortage is worsening by the day, hitting automakers hard and putting vehicle production at risk.
The European Automobile Manufacturers' Association, known as ACEA, said it is becoming increasingly concerned by the imminent disruption to European vehicle manufacturing from a dispute that has seen the supply of microchips essential for manufacturing blocked.
The Dutch government recently seized control of Netherlands-based semiconductor company Nexperia from its Chinese owner. The move prompted Beijing to prohibit Nexperia chip exports from China.
Nexperia makes basic transistors and chips that are used in products such as control units in vehicle electrical systems.
The ACEA said the auto industry is currently working through reserve stocks, but supplies are rapidly dwindling and some of its members are already expecting imminent assembly line stoppages.
Although many alternative suppliers exist, ACEA said it will take many months to build up the additional capacity needed to meet the shortfall in supply.
"Our members are telling us that part supplies are already being stopped due to the shortage." said ACEA Director General, Sigrid de Vries. "This means assembly line stoppages might only be days away."
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 29, 2025 08:24 ET (12:24 GMT)
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