European carmakers are on the brink of collapse as a global computer chip shortage spirals out of control, threatening to halt production lines within days. The European Automobile Manufacturers' Association (ACEA) has issued an urgent warning, citing dwindling supplies and the potential for assembly line stoppages. Sigrid de Vries, director general of ACEA, urged all parties involved to work towards a diplomatic solution, emphasizing that "the industry does not have that long before the worst effects of this shortage are felt."
The crisis is further compounded by China's ban on exports of Nexperia chips, which has been in place since Beijing took exception to the Dutch government's decision to seize control of the company. The move has sent shockwaves through Europe's car sector, with manufacturers such as BMW, Fiat, Peugeot, and Volkswagen scrambling to find alternative suppliers for the crucial semiconductors.
Mercedes-Benz is also searching globally for new sources, according to its chief executive Ola Källenius. Nissan, meanwhile, has confirmed that it will only receive chip supplies until early November, highlighting the severity of the shortage.
The situation has left car companies in Japan, including Honda and Volvo, on high alert, with production lines already showing signs of strain. The EU is bracing for the worst, but hopes are pinned on a diplomatic solution, which may be reached when a Chinese delegation arrives in Brussels this week.
However, analysts fear that China's approach has changed significantly since April, when it learned that hardballing the US resulted in tangible gains. Andrew Small, a senior fellow at the German Marshall Fund, warned that "China is no longer collateral damage; it's targeting Europe and other industries."
With alternative suppliers taking months to ramp up production, the EU's car industry faces an existential crisis, as the shortage bites deeper by the day.
The crisis is further compounded by China's ban on exports of Nexperia chips, which has been in place since Beijing took exception to the Dutch government's decision to seize control of the company. The move has sent shockwaves through Europe's car sector, with manufacturers such as BMW, Fiat, Peugeot, and Volkswagen scrambling to find alternative suppliers for the crucial semiconductors.
Mercedes-Benz is also searching globally for new sources, according to its chief executive Ola Källenius. Nissan, meanwhile, has confirmed that it will only receive chip supplies until early November, highlighting the severity of the shortage.
The situation has left car companies in Japan, including Honda and Volvo, on high alert, with production lines already showing signs of strain. The EU is bracing for the worst, but hopes are pinned on a diplomatic solution, which may be reached when a Chinese delegation arrives in Brussels this week.
However, analysts fear that China's approach has changed significantly since April, when it learned that hardballing the US resulted in tangible gains. Andrew Small, a senior fellow at the German Marshall Fund, warned that "China is no longer collateral damage; it's targeting Europe and other industries."
With alternative suppliers taking months to ramp up production, the EU's car industry faces an existential crisis, as the shortage bites deeper by the day.
! We're talking cars here, people! The backbone of our economy is at risk because of a global computer chip shortage 
. I get that China's been playing hardball, but is this really worth it? It feels like they're trying to crush Europe's industry and I don't think that's gonna end well for anyone 
. We need to come together as a global community and find solutions, not dig ourselves into an even deeper hole 
. The EU needs to support its car manufacturers and help them find alternative suppliers ASAP 
. We can't afford to have our entire industry grind to a halt because of some diplomatic spat 
. This is gonna be a wild ride...
. It's just...can't we all just get along and find a solution already? 
) if this happens - no new car reviews for months! 
The EU's car industry is like, on the brink of collapse or something...it's terrifying to think about. And what about all the jobs that are gonna get lost? 
and now china's banning exports 
which means the eu has to scramble around for new suppliers 
and even then it'll take months to get 'em 
i mean, honda and volvo are already feeling the strain in japan 
what's gonna happen when they stop production altogether? 
newsflash: trade wars aren't cute 
! And now China's all about flexing its muscles 
, refusing to share those crucial chips with Europe. It's like they're trying to strangle the whole industry 
, either. This is business, plain and simple 
. And let's be real, we all know how those talks usually end 
...
I mean can you imagine not having a new car for months? It's like, what even is that? 
But at the same time, it's China's problem to solve, not Europe's 
. I heard BMW is already on a global hunt for new suppliers 
I mean, can you imagine not being able to make your favorite sports car or whatever 
? it's all because of China's ban on exporting Nexperia chips