The European carmakers’ association ACEA said today it was “increasingly concerned” that the current chip shortage was set to halt production at car plants.
The shortage is due to a bust-up between the Netherlands and China. The Netherlands seized control of Chinese chip maker Experia last month, citing security concerms that it was transferring technology to Chinese parent Wingtech.
ACEA said while the political dispute continues, the situation getting worse by the day.
The industry is currently working through reserve stocks but supplies are rapidly dwindling.
It surveyed its members this week and found some are expecting imminent assembly line stoppages.
“Many alternative suppliers exist but it will take many months to build up the additional capacity needed to meet the shortfall in supply.
“The automotive industry does not have that long before the worst effects of this shortage are felt.
“We know that all parties to this dispute are working very hard to find a diplomatic solution. At the same time, our members are telling us that part supplies are already being stopped due to the shortage.” said ACEA director general, Sigrid de Vries.
“This means assembly line stoppages might only be days away. We urge all involved to redouble their efforts to find a diplomatic way out of this critical situation.”
