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Economy|Automotive IndustryBosch warns production at risk as Nexperia dispute hits auto suppliersChina has banned exports of Nexperia’s finished products, which are widely used in car parts, in response to the Netherlands seizing control of the company.

## Supply Chain Disruption in Automotive Industry

LBy Leo UnderwoodOct 24, 20251 min read

Supply Chain Disruption in Automotive Industry

German automotive supplier Bosch is preparing for potential furloughs at its Salzgitter facility due to an ongoing trade conflict involving China and the Netherlands concerning Dutch chipmaker Nexperia. This situation poses challenges for the European automotive sector.

The trade dispute has led to China's export ban on Nexperia's products following the Netherlands' control over the company. Bosch is actively seeking alternative solutions to mitigate production disruptions. While no changes have been made to working hours at German facilities, preparations for possible furlough measures, particularly in Salzgitter, are underway. This plant is a key site for motor control units for both combustion and electric vehicles, employing approximately 1,400 individuals.

The impact extends beyond Bosch, affecting other major automotive manufacturers such as Volkswagen, BMW, and Mercedes. Volkswagen has secured production for the upcoming week but acknowledges potential short-term disruptions. BMW and Mercedes have also reported challenges within their supplier networks.

The trade dispute has led to China's export ban on Nexperia's products following the Netherlands' control over the company.
Leo Underwood · Thehackingpost

IG Metall, a German union, has highlighted severe difficulties faced by some automotive suppliers, prompting announcements of furlough schemes. Alternative suppliers, such as Infineon, NXP, and Texas Instruments, are being considered, but transitions are delayed by necessary approval processes.

Bosch is optimizing inventories and leveraging alternative suppliers internationally to prevent production halts. Most Nexperia chips are produced in Europe and assembled in China. Industry representatives have urged for a political resolution. Discussions on the matter took place at a recent EU summit in Brussels, attended by Dutch Prime Minister Dick Schoof and other European leaders.

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Based on reporting by Al Jazeera.

AI transparency. This article was produced with the assistance of artificial intelligence and published under human editorial oversight. AI systems can make mistakes. Read how we use AI (EU AI Act, Art. 50).
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