European and Japanese carmakers, including Volvo, Volkswagen, Honda, and Nissan, have warned that the Dutch government's takeover of Chinese-owned chipmaker Nexperia could disrupt vehicle production. The Netherlands invoked a cold-war era law last week to take control of Nexperia, citing national security concerns over its Chinese owner, Wingtech, amid US pressure.
The Hague's decision prompted China to ban all exports from Nexperia, escalating tensions ahead of a potential meeting between US President Donald Trump and Chinese President Xi Jinping. The Japan Automobile Manufacturers Association said it received a warning from Nexperia that chip supplies could be constrained, potentially halting manufacturing at member companies including Toyota, Honda, and Mazda.
Germany's VDA trade association warned of serious consequences for an industry already facing competition from Chinese EV makers. VDA President Hildegard Müller said the situation could lead to significant production restrictions or even stoppages if chip deliveries are not resolved soon. The VDA met with the German economy minister to push for quick solutions from the federal government and European Commission.
Volvo Cars CEO Håkan Samuelsson said the Swedish group, owned by China's Geely, was not yet facing problems but expected rivals to be hit. "I think there will be some factories shut down," he told the Financial Times. Volkswagen confirmed that some Nexperia components are used in its vehicles but said production was currently unaffected, though an impact cannot be ruled out in the short term.
The UK's Society of Motor Manufacturers and Traders said chip supply problems were the last thing the industry needed, warning of severe disruption to vehicle production and market supply if not resolved quickly. Nissan said it was assessing the situation and would take appropriate measures.
