The European car industry is on edge as manufacturers warn that assembly lines could be shut in the coming days due to an acute shortage of semiconductors from China.

According to the Guardian, the European Automobile Manufacturers Association (ACEA), whose members include BMW, Fiat, Peugeot and Volkswagen, has issued an emergency warning, with director general Sigrid de Vries stressing that companies are now operating with “reserve” stocks that are running out fast: “Production interruptions could be a matter of days. We call on all parties to find a diplomatic solution immediately.”

Mercedes, according to CEO Ola Källenius, is looking for alternative sources of supply around the world. In Japan, Nissan’s chief performance officer, Guillaume Cartier, said chip supplies “will only last” until the first week of November.

The crisis intensified after China’s Ministry of Commerce decided to block exports of Nexperia products from factories in China, in response to the Dutch government’s takeover of the company and the suspension of its Chinese chief executive following US concerns over security issues. Although most of Nexperia’s semiconductors are made in Europe, about 70% are packaged in China before distribution, exacerbating the problems.

European manufacturers say that while alternative suppliers are available, building additional capacity takes months – time the industry doesn’t have. The blow comes in addition to Beijing’s reinstated restrictions on exports of rare metals, which are critical to many systems in modern vehicles.

Wingtech, Nexperia’s parent company, accused the Dutch government of “reckless actions” that are disrupting the global supply chain. European sources say there is room for compromise, but ACEA warns that “time is running out” and that the worst effects of the shortage could soon be felt. /tesheshi.com/

Kaynak: prizrenpost