EU Car Manufacturers on Brink of Halting Production Over Chip Shortage
A severe shortage of computer chips from China is threatening to bring European car production to a standstill. The European Automobile Manufacturers' Association (ACEA) has warned that its member companies, including BMW, Fiat, Peugeot, and Volkswagen, are "days away" from halting work due to dwindling supplies.
The crisis began when Beijing banned exports of Nexperia chips in response to the Dutch government's decision to take over the Netherlands-headquartered company on September 30th. The US had flagged security concerns over the Chinese chief executive, leading to the takeover.
Industry leaders are now scrambling to find alternative sources for the crucial semiconductors, which are essential for all electronics in vehicles, including dashboard functions, ignition systems, and transmission systems.
Mercedes is searching globally for alternative suppliers, according to its chief executive Ola Källenius. Meanwhile, Japanese car manufacturers like Nissan are bracing themselves for production line stoppages, with Guillaume Cartier warning that the company's supply will only last until early November.
The shortage has already caused significant problems in Japan and is expected to have severe consequences for European car manufacturers if a diplomatic solution cannot be reached quickly.
China's attitude towards the EU appears to have shifted since April, when Beijing learned that hardballing the US had resulted in gains. Andrew Small, a senior fellow at the German Marshall Fund, believes China is now deliberately targeting European industry and other industries worldwide with its tactics.
A high-level delegation from Beijing will arrive in Brussels on Friday for talks, but there are concerns that the EU's diplomatic efforts may not be as effective as those used by the US and China. With the situation rapidly deteriorating, European car manufacturers are under pressure to find a solution before it's too late.
A severe shortage of computer chips from China is threatening to bring European car production to a standstill. The European Automobile Manufacturers' Association (ACEA) has warned that its member companies, including BMW, Fiat, Peugeot, and Volkswagen, are "days away" from halting work due to dwindling supplies.
The crisis began when Beijing banned exports of Nexperia chips in response to the Dutch government's decision to take over the Netherlands-headquartered company on September 30th. The US had flagged security concerns over the Chinese chief executive, leading to the takeover.
Industry leaders are now scrambling to find alternative sources for the crucial semiconductors, which are essential for all electronics in vehicles, including dashboard functions, ignition systems, and transmission systems.
Mercedes is searching globally for alternative suppliers, according to its chief executive Ola Källenius. Meanwhile, Japanese car manufacturers like Nissan are bracing themselves for production line stoppages, with Guillaume Cartier warning that the company's supply will only last until early November.
The shortage has already caused significant problems in Japan and is expected to have severe consequences for European car manufacturers if a diplomatic solution cannot be reached quickly.
China's attitude towards the EU appears to have shifted since April, when Beijing learned that hardballing the US had resulted in gains. Andrew Small, a senior fellow at the German Marshall Fund, believes China is now deliberately targeting European industry and other industries worldwide with its tactics.
A high-level delegation from Beijing will arrive in Brussels on Friday for talks, but there are concerns that the EU's diplomatic efforts may not be as effective as those used by the US and China. With the situation rapidly deteriorating, European car manufacturers are under pressure to find a solution before it's too late.
Like, can you even imagine if our cars just stopped working like that? 
I'm so glad they're trying to find alternative suppliers ASAP! 
But, gotta say, China's attitude is getting pretty suspicious... 
They're basically taking a page from the US playbook and targeting the EU now. 
It's not cool, but let's hope our diplomats can still get some progress out of this meeting in Brussels on Friday 
. And now China's playing hardball over there 
. I don't blame them for trying to protect their own interests, but come on! We need those chips for so many things! 
I'm keeping an eye on this situation, hoping that some diplomatic magic happens soon 
️.
. I mean, can't Europe even get its own chips made anymore? It's like they're addicted to Chinese tech or something 
. Mark my words, this is just the beginning of some major problems for European car manufacturers. They need to start diversifying their supply chains ASAP before things get out of hand 
what about the jobs tho? thousands of people losing work because of this? so not cool.
I'm just thinking... this whole chip shortage thing got me wondering, have we become so reliant on global supply chains that when things go haywire, our entire way of life is at risk? It's like, what happens if Beijing decides to pull the plug next on something else we need? Are we prepared for that? 
And what's with this 'takeover' business? It feels like some kind of reverse mercantilism... China gets to dictate terms because they can just not send chips anymore? 
. It's all just a big mess, if you ask me. China's being all stubborn and stuff, but can't they see that this is hurting everyone involved? 
. And what about the alternative suppliers? We've seen Nissan scrambling around like a chicken with its head cut off 
...this is getting ridiculous!
. i really hope the eu is able to negotiate something out of this situation or we'll be in big trouble 
I feel bad for the manufacturers trying to find new suppliers, but they have to think about profits too. Can't they negotiate a deal or something? 
It's just one of those situations where no one wins. 
idk if they can find a solution before it gets worse 
I hope the EU's talks with China go well 
. I mean, I know cars have become so advanced, but come on! 
, or we'll be stuck in traffic forever 
. They're just trying to get back at the EU for taking down that company they own, right? 
& theres no way to find alternative suppliers fast enough cuz it takes forever to set up production lines 
I mean i feel for Japan cuz they already r feeling the heat 
but eu manufacturers gotta act fast or else its game over 
and beijing banning exports of nexperia chips because of the dutch takeover is just rich 
. and now we're stuck in a diplomatic limbo where the eu can't even coordinate effectively? 
what's the plan here? are we gonna be car-less by november 
? gotta keep an eye on this one 
maybe china's trying 2 make up 4 losin the us market or watever 
anyway, i hope eu gov gets a grip on dis situation & gets china 2 negotiate ASAP 