European auto lobby ACEA said it was deeply concerned about a possible shortfall in chips used in vehicles after Beijing banned Nexperia from exporting goods from China.

"We suddenly find ourselves in this alarming situation. We really need quick and pragmatic solutions from all countries involved," said ACEA director general, Sigrid de Vries.

Netherlands-based Nexperia has found itself at the centre of a tug-of-war between China and the Netherlands over semiconductors, an increasing source of global geopolitical tension.

Officials in the Netherlands invoked a Cold War-era law in late September to effectively take control of the Dutch-based company, citing national security concerns.

The company, a major supplier of semiconductors used in the electronic control units of cars' electrical systems, then said the Chinese government had in turn banned it from exporting certain goods from China since October 4.

Days later, automakers and their suppliers were notified by the firm that it could no longer guarantee chip deliveries, said ACEA, which represents major manufacturers from BMW to Stellantis.

"Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages," the group said.

Producers source similar chips from other companies. But "the homologating of new suppliers for specific components and the build-up of production would take several months", while stocks of Nexperia chips are predicted to last only a few weeks, it added.

"This is a cross-industry issue affecting a large number of suppliers and virtually all of our members," said de Vries.

ub/ec/rl

ACEA

BAYERISCHE MOTOREN WERKE AG

Stellantis