Stellantis is running a daily war room to manage potential chip shortages tied to Nexperia

Stellantis has set up a dedicated war room to track and manage chip shortages linked to Nexperia, the Dutch semiconductor company now tangled in the ongoing U. S.–China trade conflict, according to the automaker’s earnings call event on ￰0￱ Antonio Filosa told analysts and investors that Stellantis is “monitoring day-by-day the chip situation from Nexperia” and “pushing actions and projects every day” to keep its factories running without ￰1￱ global auto industry has once again been facing the risk of supply chain chaos, this time not because of a pandemic but because of ￰2￱ Dutch government recently took control of Nexperia after Washington raised national security concerns.

Nexperia, owned by China’s Wingtech Technology, was accused of posing risks in an emergency ￰3￱ retaliated by blocking exports of the company’s finished chips, setting off alarms from Europe to North ￰4￱ rush to contain chip fallout Honda Motor was the first to cut output this week, confirming that production lines at its U. S., Canada, and Mexico plants have been ￰5￱ company called it an “industrywide semiconductor supply chain issue” and described the situation as “fluid.” Honda said it is “making strategic adjustments to production as necessary to carefully manage the available supply of parts.” Volkswagen said it has enough chips to maintain output through the week but expects potential disruptions soon after, while other automakers are working overtime to stay ￰6￱ Ford CEO Jim Farley, who told reporters in Washington that the chip issue is “a political problem” and said he has been speaking with both ￰7￱ Chinese officials to avoid fourth-quarter production losses.

“A quick breakthrough is really necessary to avoid fourth-quarter production losses for the entire industry,” Jim ￰8￱ Motors CEO Mary Barra echoed that sentiment, saying GM teams are “working around the clock with our supply chain partners to minimize possible disruptions.” Mary warned that while production could be affected, updates will continue throughout the quarter. Mercedes-Benz CEO Ola Källenius added that this is “a politically induced situation” and said the only solution lies “in the political space, primarily between the United States and China, with Europe caught in the middle.” The Dutch government’s intervention in Nexperia late last month was seen as ￰9￱ said they acted because the company’s chip technologies “would become unavailable in an emergency.” But that decision has backfired, leading to export restrictions that have hit automakers’ access to legacy semiconductors; the basic chips used in systems like windshield wipers, windows, and door controls.

Suppliers, governments, and war rooms scramble for solutions To keep factories alive, many automakers have established their own war rooms to track the situation and search for alternative suppliers and chips sold directly on the open market, which are pretty ￰10￱ Motor & Equipment Manufacturers Association (MEMA) said in an emailed statement that “suppliers across the motor vehicle industry are working to understand the potential effects on production and supply continuity.” MEMA stressed that “even the absence of a single diode or chip can disrupt the manufacture of vehicles.” The European Automobile Manufacturers’ Association (ACEA) warned that “assembly line stoppages might only be days away.” ACEA Director General Sigrid de Vries urged governments to “redouble their efforts to find a diplomatic way out of this critical situation.” Nexperia, which produces high-volume chips for automotive and consumer products, said in a statement that it is seeking an exemption from the export restrictions.

A Wingtech spokesperson condemned the Dutch decision, saying the company “will robustly defend its rights and use every legal avenue to do so.” The spokesperson added that restoring “full control and ownership rights to the company’s rightful shareholders and management” is essential to “repair the damage to its reputation and de-escalate international tension.” For now, the industry ￰11￱ meeting between President Donald Trump and President Xi Jinping earlier this week offered no ￰12￱ your free seat in an exclusive crypto trading community - limited to 1,000 members.