The Dutch government’s seizure of Chinese-owned chip producer Nexperia is threatening a substantial part of Europe’s automobile-producing industry, notably Germany’s Volkswagen group and Mercedes-Benz Group AG, with an acute shortage of chips. According to the European Automobile Manufacturers’ Association (ACEA), the production lines of several car manufacturers could soon come to a standstill.
“This means that it could only be a matter of days before the production lines come to a halt,” warns ACEA President Sigrid de Vries. The association reports that the situation is worsening “day by day” and that member companies are already reporting suspended component deliveries.
