Volvo Cars, VW and more warn about Nexperia chip shortage
Volvo Cars and VW have warned that the ongoing shortage in supply of Nexperia semiconductors could affect production.
The carmakers have said there could be temporary plant shutdowns in Europe due to the supply chain disruptions. While the OEMs don’t directly supply the chips, they are used in components further up the supply chain. Current stocks of Nexperia chips, which operate everything from switches to steering wheel controls, are expected to last for just a few weeks.
Håkan Samuelsson, chief executive, Volvo Cars said in a recent interview: “I think there will be some factories shut down. You always have to be a bit smarter than the rest of the pack so you are not the one that has to shut down the factory."
VW Group issued an internal memo to staff last week which acknowledged that production could be affected in the short term. Its CEO, Oliver Blume, said the company has secured a temporary buffer of Nexperia chips, but that swift political action is needed to prevent longer-term disruptions.
Meanwhile, other OEMs seem more confident in their supply chains. Mercedes-Benz has said its short-term chip supply is secure, but that it is closely monitoring and working with its partners to close any potential gaps, while BMW has said production is continuing as planned, although it acknowledged that some of its supplier network is affected by the shortage. GM’s CEO Mary Barra said the OEM is “working around the clock” with its partners to minimise possible disruptions, and Stellantis said it is closely monitoring the situation to assess impacts and mitigations.
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Logistics service provider Priority Freight has acknowledged that any disruption to Nexperia's operations risks creating bottlenecks across the world’s automotive production lines, noting that for manufacturers already managing complex just-in-time supply chains, even short-term interruptions can lead to costly production halts.
"In times like these, resilience depends on speed, flexibility and foresight," said Stuart Stobie, chief commercial officer at Priority Freight. "Automotive OEMs and tier one suppliers must be ready to respond rapidly to supply chain disruptions – diversifying sources where possible and securing critical components through alternative logistics strategies."
"While the outcome of the Nexperia dispute remains uncertain, one thing is clear – collaboration across the supply chain will be vital to minimising disruption," Stobie added.
We will update this story as more information becomes available...
