Volvo Cars, VW and more warn about Nexperia chip shortage

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.

Disarray at semiconductor manufacturer Nexperia prompts supply chain concerns

After the Dutch government seized chipmaker Nexperia, disorder within the company has prompted concerns over semiconductor supply and the impact on automakers.

Ilkhan Ozsevim

James McLoughlin

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.

We will update this story as more information becomes available...