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Carmakers worldwide are preparing to scale back production after an export freeze on Chinese-owned semiconductor company Nexperia BV in the Netherlands threatened to disrupt global supply chains.
Honda Motor Co. announced this week that it has cut or suspended output at several plants in North America, citing the chip shortage caused by China blocking Nexperia — owned by Wingtech Technology Co. — from exporting products manufactured locally. The move was in response to the Dutch government taking control of Nexperia under emergency powers to protect strategic production.
Honda is halving production at its Canadian plant, where it builds Civic sedans and CR-V SUVs, while its Mexican facility was fully shut down on Tuesday, company spokespeople said.
The disruption has raised alarms across Europe. The European Automobile Manufacturers Association (ACEA) warned Wednesday that carmakers on the continent could be forced to halt production within days. Manufacturers are currently relying on dwindling chip inventories to keep assembly lines running. Germany’s Mercedes-Benz Group AGsaid it has sufficient Nexperia chips for the short term.
In the United States, the Motor & Equipment Manufacturers Association cautioned that American automakers are only weeks away from “significant impacts” if the Nexperia dispute continues unresolved.
The standoff comes amid a broader trade tension, with China tightening export controls on rare earths and battery materials critical to electric vehicles. Bilateral talks between Chinese President Xi Jinping and former U.S. President Donald Trump on Thursday raised hopes of a deal that could stabilize supply chains for sectors ranging from automotive to electronics.
Nexperia produces semiconductors used in vehicle control systems, powering components such as windshield wipers, windows, and other in-car electronics.
Industry leaders have stressed the political dimension of the conflict. Ford CEO Jim Farley called the dispute “political” and said he raised the issue with government officials during a Washington visit last week. General Motors CEO Mary Barra told investors that chip constraints “have the potential to impact production.” Stellantis NV said it is working with Nexperia and other suppliers to assess potential impacts and implement mitigation strategies.
Other automakers report more limited exposure, at least for now. Toyota Motor Corp. said the export halt has had a minimal effect so far. CEO Koji Sato described the disruption as a risk but emphasized that the company continues to manage daily supply chain challenges.
Nissan Motor Co. has sufficient Nexperia chips to last until the first week of November, according to Chief Performance Officer Guillaume Cartier. Speaking at a car show in Tokyo, Cartier acknowledged the issue is “not small” and said Nissan is monitoring short-term impacts on major suppliers while continuing to assess potential downstream effects.
As the dispute unfolds, carmakers are weighing contingency plans and stockpiling inventories where possible. Analysts warn that prolonged interruptions could slow production globally, affecting both traditional and electric vehicle output and potentially raising prices for consumers.
