European automakers warn of production shutdown as microchip shortage intensifies

The European Automobile Manufacturers Association (ACEA) has issued an urgent warning that car production across Europe may soon come to a halt due to a critical shortage of microchips used in automotive electrical systems.

The violation is related to a political dispute blocking the export of Nexperia chips from China, which remains unresolved.

Supply depletion threatens the continuity of the assembly line

According to ACEA, the shortage is rapidly worsening as automakers deplete existing stocks of chips needed for vehicle control units.

Car companies have shown that some manufacturers can shut down assembly lines within a few days, while others are facing serious supply problems.

Although alternative chip suppliers exist, ACEA noted that capacity expansion or the qualification of new suppliers could take months, leaving manufacturers unable to meet immediate needs.

ACEA calls for urgent diplomatic action

Sigrid de Vries, CEO of ACEA, confirmed that diplomatic negotiations were continuing, but warned that a production shutdown could begin soon if the situation persists.

She called on politicians to "step up diplomatic efforts to prevent serious disruptions in Europe's automotive industry," stressing the need for a coordinated European response to protect supply chains and industry competitiveness.