The global automotive industry is facing a deepening crisis as semiconductor shortages intensify amid mounting US-China trade tensions. Chipmaker Nexperia, a critical supplier for major automakers, has been hit with new export restrictions on advanced chips — sending shockwaves across global production lines.
Major Automakers in Crisis Mode
– Nissan says current supplies will only last until early November, forcing reduced production schedules.
– Honda has completely halted operations at its Mexican assembly plants, leaving thousands of workers idle and delaying key SUV releases.
– Mercedes-Benz warns of looming disruptions across its global fleet.
– Volkswagen, Fiat, and others in Brazil are preparing to shut down plants within weeks due to incoming shortages.
Emergency Plans and ‘War Rooms’ Activated
Automakers have set up emergency sourcing “war rooms,” urgently turning to chip stockpiles in Taiwan and South Korea in an attempt to stabilize operations.
Market Impact
Analysts forecast a 15–20% decline in Q4 automotive output, worsening EV rollout delays, tightening supply, and pushing up vehicle prices. Shares of impacted automakers fell 2–4%, reflecting escalating concerns.
Industry Warning
“This isn’t just a hiccup — it’s a supply chain meltdown,” said Ford’s procurement chief, urging diplomatic intervention to prevent further disruption.