European car manufacturers are close to suspending production as tensions with China over semiconductor supplies continue to escalate.
The European Automobile Manufacturers’ Association (ACEA) warned on Wednesday that its members, including Volkswagen, Fiat, Peugeot and BMW, are currently relying on existing chip reserves, which are now running dangerously low.
“Assembly line stoppages might only be days away. We urge all parties to redouble their efforts to find a diplomatic solution to this critical situation,” said Sigrid de Vries, ACEA’s director general.
Mercedes-Benz, also a member of the association, is now seeking alternative sources for semiconductors, according to its CEO Ola Källenius.
The shortage has also hit Japanese carmakers such as Nissan, whose Chief Performance Officer Guillaume Cartier said they should be able to manage through the “first week of November“.
Tensions worsened after Beijing banned exports of chips produced by Nexperia, following the Dutch government’s seizure of the company’s headquarters in the Netherlands in an effort to keep production going.
