Automokers are hunting high and low for chips as supply problems worsen

By aditi shah, Daniel Lessink and Rachel more

Tokyo / Berlin (Reuters) are found in presentations to get chips and check suppliers to see if they have enough skonk, as the removal semiconductor is related to the Dutch Firm Nexperia threatens the production of cars in the whole industry.

Beijing has banned Nexperia products from China after the Dutch government moved to regulate the chipmaker last month, with concerns over technology transfers to its Chinese parent, Wingtech, flagged as a national threat.

On Wednesday, the association of European car manufacturers warned of future disruptions in car schedules from the death of Nexperia related to Phic. “The sector is currently working with stocks but supplies are moving quickly” and some retailers will need months to build up stocks, the group said.

Nissan Motor and Mercedes-Benz are among the Carmakers trying to deal with the uncertain supply situation, with Nissan saying they have enough chips until the first week of November.

Honda is suspending production at the Mexico plant on Tuesday, and has begun adjusting production in the US and Canada, a group spokesman said.

The latest challenge of the Wrestling Sector

Some manufacturers in Brazil may have to suspend operations within two to three weeks if the crisis continues, according to a government official there.

Nexperia’s chips are widely used in transportation, making the latest challenge the industry is already grappling with US tariffs and Chinese export curbs.

“It’s a big problem,” Nissan chief executive Guillaume Carrier told reporters at the Japan Mobility Show in Tokyo. “Right now we don’t have full visibility.”

Cartier said the automaker is “ready for the first week of November” in terms of the chip.

Even if cars learned a lesson from the shortage of pandemic biker-raised pet chips, they were at the mercy of their suppliers, including small ones, he said. While there may be the appearance of “Tier 1” suppliers of the largest Tiers, they become extremely difficult by going to the market, he said.

Marc Winterhoff, CEO of US Electric-Maker Lucid Group, said that the Company’s engineering team had found other items, and the impact on production plans was removed. “It’s progressing in the right direction,” he said at the Auto USA conference in Detroit.

General Motors is managing the problem and no factory was affected, said a spokesman for the company.

Mercedes hunting supply

“It goes without saying that we hit the world to look for other ways, said Mercedes-Benz CEO KAellenius said, adding that the German automaker was covered for a short time. This is different than the last chip problem because now the controversy is based on politics and will need a political solution, said Kaellenius.

It is also a reminder that Global Supply Chains Leave manufacturers vulnerable to globalization.

“In a modern high-tech car, you have five continents inside,” Kaellenius said.

Automokers are looking at halting production or using some parts to ride the shortage, said Klaus Schmitz, managing partner of Arthur D. Little.

But ultimately, companies – and governments – will want to sit down with China to find a solution.

“Certainly, companies will now negotiate with China. Governments are negotiating with China, especially the US,” said Schmitzi.

“The actual impact needs to be seen, but it’s likely to be a very serious situation.”

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