"The industry is bracing for production stops after chip supplier Nexperia warned that a spat between the Netherlands, where the firm is located, and the firm's Chinese owners could hit supply. They're also preparing for a squeeze on raw materials key for electric motors after new figures from China's customs office released last week showed China's rare-earth exports fell 31% in September from August."
"For Germany in particular, Europe's largest carmaker, the consequences of that disparity go beyond the production line to threaten its very prosperity. "The combustion engine is not just part of a car, it's the ultimate competitive advantage of the automotive industry in Germany," said Andreas Herrmann of the St. Gallen University in Zurich. "Obviously this industry needs more time to develop new areas, new parts for competitive advantage," he told DW."
European carmakers increasingly depend on Chinese suppliers for critical components and markets. Chip supply could be disrupted after Nexperia warned that a dispute between the Netherlands and the firm's Chinese owners might hit shipments. China's rare‑earth exports fell 31% from August to September, tightening supplies for electric‑motor magnets. Domestic European suppliers rooted in combustion‑engine parts are struggling while producers of magnets, chips and batteries are concentrated in China and elsewhere. German automakers face particular risk because the combustion engine underpins much of Germany's industrial competitiveness. The combined effects threaten production, profits and employment across the continent's auto sector.
Read at www.dw.com
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