The Volkswagen Group is one of the car companies that relies on chips from Nexperia. In a statement, the firm said: “Vehicle production at the Wolfsburg, Emden, Zwickau, Osnabrück and Dresden sites is secured for the coming week.” However, VW added that it’s “in close contact with stakeholders in light of the current situation”, and that “short-term effects on production cannot be ruled out”.
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Among the other firms that source chips from Nexperia either directly or indirectly are Nissan, Volvo, Honda, Mercedes and BMW. In light of the potential issues facing the automotive industry with chip shortages, a Nissan spokesperson said the company is “assessing the situation and will take appropriate measures as needed”.
As cars become more software-orientated, chip shortages become increasingly problematic. For example, the original Volkswagen Golf had around 30 semiconductors, while the current model has around 8,000, and the all-electric ID.7 has roughly 10,000 more.
Volkswagen Group and Rivian Technologies recently announced a partnership that will result in a “secure supply” of “high-tech semiconductors” – although this will be for cars produced in the future, rather than any current models. In a statement, the VW Group said it is “currently examining alternative sourcing options in order to minimise possible effects on its supply chain”.
There could be a lifeline in future with the US and China currently negotiating a new trade deal that will lower tariffs and supply of rare-earth metals – potentially indirectly affecting the wider global car industry. However, this isn’t likely to have any immediate bearing on Europe’s automotive manufacturing status.
The previous semiconductor shortage, which started during the Covid pandemic, was exacerbated by geopolitical factors and affected most electronic goods – from PlayStations to washing machines. Chip shortages caused several car firms to halt production – factories such as MINI’s Oxford plant, Renault’s Flins factory in France and even General Motors’ facilities in North America all paused their production lines.
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