Auto sector grapples with Nexperia disruption amid hopes for Dutch-China talks

Core Points - German automotive suppliers are facing significant production disruptions due to a global chip supply shortage linked to the trade dispute over Nexperia, affecting thousands of workers at Bosch [1][2] - The Dutch government has taken control of Nexperia amid concerns over technology transfers, which has led to export restrictions from China, exacerbating the chip supply issues [3][4] - Bosch is implementing furlough measures at its production sites in Germany and Portugal, with hundreds of workers affected due to the ongoing supply crunch [4][5] Industry Impact - Major suppliers like Bosch, Aumovio, and ZF Friedrichshafen are struggling to find alternative chip suppliers, while some exemptions from China's export ban have been granted [4] - The VDA automotive association has indicated that the situation remains tense, with potential further impacts on supply chains anticipated in the coming weeks [5][6] - Global supply chain disruptions are also affecting other manufacturers, such as Nissan, which plans to cut production by 1,400 vehicles at its Kyushu plant [6]