The European Automobile Manufacturers’ Association (ACEA) has issued an urgent warning that vehicle production across Europe could soon come to a standstill due to a critical shortage of microchips used in automotive electrical systems.
The disruption stems from a political dispute blocking Nexperia chip exports from China, which remains unresolved.
Supply depletion threatens assembly line continuity
According to ACEA, the shortage is rapidly worsening as automakers deplete existing stockpiles of chips essential for vehicle control units. Automotive companies revealed that some manufacturers may shut down assembly lines within days, while others face severe supply bottlenecks. Although alternative chip suppliers exist, ACEA noted that expanding capacity or qualifying new suppliers could take months, leaving manufacturers unable to cover immediate needs.
ACEA calls for urgent diplomatic action
Sigrid de Vries, director general of ACEA, confirmed that diplomatic negotiations are ongoing but cautioned that production halts could begin imminently if the situation persists.
She called on policymakers to “intensify diplomatic efforts to prevent major disruption to Europe’s automotive industry,” stressing the need for a coordinated European response to protect supply chains and industrial competitiveness.
