European carmakers are deploying their “Covid playbook” as they prepare for a fierce battle over automotive chip supplies after the Dutch government seized control of Chinese-owned chipmaker Nexperia. Carmakers and their suppliers are mapping out their exposure to Nexperia after Beijing moved to cut off its outbound shipments following the diplomatic tussle over a company the Dutch government has decided is crucial to Europe’s economic security. Nexperia makes basic low-margin chips that are widely used for electronics in cars. It was sold to a Chinese consortium in 2017 before being bought by Chinese group Wingtech. The European Automobile Manufacturers’ Association (Acea), an industry body, has warned that stocks of Nexperia chips will run out in a few weeks. “It’s going to be a war between carmakers,” said one person at a European manufacturer.

Full report : European automakers warn of substantial disruption to production after China cut off Nexperia’s outbound shipments following the Dutch seizure of Nexperia.