Car assembly lines could stop as chip shortage worsens
The European Automobile Manufacturers’ Association (ACEA) has said it is increasingly concerned by imminent disruption to vehicle manufacturing due to the block in supply of microchips from China.
The resulting shortage of supply of the type of chips used in the control units of vehicle electrical systems is hitting automakers around the world hard, said the association.
The industry is currently working through reserve stocks but supplies are rapidly dwindling and some manufacturers are already expecting imminent assembly line stoppages.
Alternative suppliers exist but it will take many months to build up the additional capacity needed to meet the shortfall in supply.
ACEA director general Sigrid de Vries said: “We know that all parties to this dispute are working very hard to find a diplomatic solution. At the same time, our members are telling us that part supplies are already being stopped due to the shortage. We urge all involved to redouble their efforts to find a diplomatic way out of this critical situation.”
