Volvo Cars and Volkswagen warned that there might be temporary plant shutdowns in Europe as a result of supply chain disruptions caused by a battle between China and the Netherlands over control of chipmaker Nexperia.
Nexperia also notified Japanese auto parts manufacturers that it may not be able to guarantee supply as car executives urged for a diplomatic solution to fend off a bigger hit to the global industry.
“We are aware that this situation could have a serious impact on the global production of our members,” the Japan Automobile Manufacturers Association said. “We hope that each country involved will reach a prompt and realistic solution.”
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