The Chip Is In Emergency!Auto Giants May Cease Production

A new round of chip shortages is sweeping the global auto industry, with European auto giant Volkswagen Group bearing the brunt.

According to multiple sources including Germany's "Bild" and Reuters, the previousNetherlands Nexperia (Nexperia)The impact of supply chain disruptions caused by disputes,Many Volkswagen factories have entered a countdown to suspend production, European automobile manufacturing industry faces the risk of shutdown.

Source: Reuters

roadReuters said Volkswagen announced to employees on Wednesday that it would temporarily suspend production at its central plant in Wolfsburg on Friday. Golf and Tiguan modelsof production.

Although in the internal letter, Volkswagen stated that the chip shortage has not affected production and that the move was just to deal with an inventory issue unrelated to production, Volkswagen also stated that,Given the dynamics of the supply chain, the company cannot rule out the possibility of an impact on production in the short term and said it is closely monitoring the situation.

Previously, the European Automobile Manufacturers Association warned that Nexperia's delivery interruption may lead to the shutdown of European vehicle assembly lines. Recently,Mercedes-Benz, BMW and many other car companiesThey have also successively issued reminders to be wary of cutting off confessions.

Source: BMW official website

This shows that the controversy at Dutch chipmaker Nexperia is threatening the European automotive industry.Auto industry groups have sounded the alarm about the possible impact on production after the Dutch government took over control of Nexperia last month, citing intellectual property issues, while China restricted exports of chips needed by European carmakers.

It is reported thatThe Dutch government took over Nexperia on September 30, requiring Nexperia and all its subsidiaries, branches, offices, etc. not to make adjustments to assets, intellectual property, business, and personnel within one year, and dismissed its CEO Zhang Xuezheng from his position on the grounds thatThere are concerns that Nexperia’s Chinese parent company, Wingtech Technology, may steal its technology.

Source: Reuters

Public information shows that the takeover occurred after Wingtech Technology was included in the entity list by the United States. According to sources,The United States told the Dutch government in June this year that the United States would be open to Nexperia only if the Chinese CEO of Nexperia was replaced.After the Nexperia incident broke out, China quickly took countermeasures.On October 4, China’s Ministry of Commerce banned Nexperia from exporting chips from China, which temporarily suspended all shipments.

However, not long ago, Reuters quoted two people familiar with the matter as saying that Wingtech Technology has resumed the supply of semiconductors to local distributors, but only for domestic trade.All sales to distributors must now be settled in RMB。

Source: Mercedes official website

newspaperDow said that Nexperia's controversy has intensified global trade tensions and caused harm to European automakers and their suppliers. Most of Nexperia's chips are packaged in China, and their usage scenarios cover many fields such as automobiles, consumer electronics, and industry.Especially it is widely used in automobile manufacturing and is commonly used in major mainstream car companies.

At present, all parties are still seeking to break the situation.The Dutch and Chinese economic ministers held talks on Tuesday but failed to find a solution to the Nexperia standoff.On Wednesday, the German Economy Ministry said it would hold a conference call with automakers and suppliers to discuss developments related to Nexperia.

As for automobile manufacturers,BMW and Mercedes-Benz recently said they are working with suppliers to ensure production is maintained amid the Nexperia standoff.Volkswagen's two factories will soon face production suspensions, although it said there is no connection between these measures and chip supply problems.

However, "Bild" also quoted unspecified sources as saying that Volkswagen has begun discussions with the labor department to launch a government-backed work-hour reduction plan that may affect tens of thousands of employees, which may further affect its production plans in addition to chip factors.