"As if European carmakers needed more reminders of their dependency on China, new ones keep popping up. The industry is bracing for production stops after chip supplier Nexperia warned that a spat between the Netherlands, where the firm is located, and the firm's Chinese owners could hit supply. They're also preparing for a squeeze on raw materials key for electric motors after new figures from China's customs office released last week showed China's rare-earth exports fell 31% in September from August."
"Production has not yet been impacted by chip shortages, the company said in an internal letter to its workers, according to a spokesperson quoted by Reuters. "In view of the dynamic situation, however, we cannot rule out an impact on production in the short term," the spokesperson said. Chip and raw material issues come in a year of plunging profits and job cuts"
Nexperia warned that a dispute between the Netherlands and its Chinese owners could disrupt chip supply, prompting potential production stops. China's customs data showed rare-earth exports fell 31% in September from August, risking shortages of materials for electric motors. Volkswagen warned that recent supply-chain issues could lead to production stoppages, though chip shortages have not yet affected output. Chip and raw-material strains compound a year of plunging profits and job cuts. European domestic suppliers built on combustion-engine components are struggling while crucial electric-vehicle components—magnets, chips and batteries—remain concentrated outside Europe, notably in China, threatening competitiveness.
Read at www.dw.com
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