China has banned exports of Nexperia’s completed merchandise, that are extensively utilized in automobile components, in response to the Netherlands seizing management of the corporate.
Printed On 24 Oct 2025
German automobile components provider Bosch is making ready to furlough employees at its Salzgitter plant if a commerce dispute between China and the Netherlands over Dutch chipmaker Nexperia isn’t resolved quickly, amid mounting issues in Europe’s beleaguered automobile trade.
Bosch and different suppliers are scrambling for alternate options after China banned exports of Nexperia’s completed merchandise in response to the Netherlands seizing management of the corporate, whose Chinese language proprietor Wingtech has been flagged by the USA as a doable nationwide safety danger.
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As a result of Nexperia’s chips are extensively utilized in automobile components, the standoff dangers including to issues for Europe’s carmaking sector on high of US tariffs and Chinese language curbs on rare-earths exports.
“We’re at the moment doing all the pieces we will to serve our prospects and keep away from or minimise manufacturing restrictions,” a Bosch spokesperson mentioned in an emailed assertion to the Reuters information company.
“We have now not but made any changes to working hours at our German areas, however are making ready to take action, significantly in Salzgitter,” she mentioned, including that potential furlough measures had been being ready on the plant.
Salzgitter is Bosch’s lead plant for motor management items for combustion and electrical autos, and employs about 1,400 employees.
Earlier on Friday, Volkswagen mentioned it had secured manufacturing in Germany for the approaching work week throughout the group, which incorporates the core VW model and luxurious subsidiary Porsche.
“In view of the dynamic scenario, nonetheless, short-term impacts on the manufacturing community of the Volkswagen Group can not usually be dominated out,” a spokesperson mentioned.
Worsening scenario
BMW and Mercedes have additionally warned that their provider networks are affected.
A regional consultant of Germany’s IG Metall union warned on Friday of a worsening scenario.
Some automotive suppliers are already seeing “extreme difficulties” and have began to announce furlough schemes for staff, Horst Ott, IG Metall district supervisor within the southern state of Bavaria, mentioned at an trade occasion in Munich.
He didn’t point out any firms by identify.
Bosch mentioned it was drawing on various suppliers and optimising inventories in its world manufacturing community in a bid to stop manufacturing stoppages.
Most Nexperia chips are manufactured in Europe, however packaged in China.
Business sources say switching suppliers is feasible, with Infineon, NXP and Texas Devices doable alternate options, however this takes time on account of approval processes.
Auto trade our bodies have known as for a political resolution.
Dutch Prime Minister Dick Schoof mentioned the scenario with different European leaders throughout an EU summit in Brussels this week.