Category: Blaze Media
Global chip dispute threatens auto production again!
The auto industry just can’t seem to get a break.
Just a few years out from COVID-era supply chain issues, a new computer chip shortage looms — and it’s threatening manufacturers on both sides of the Atlantic.
Germany’s auto industry lobbying group VDA warns that carmakers are days away from having to shut down production — with the crisis possibly spreading beyond Europe to the U.S. within weeks.
Automakers cannot simply switch suppliers overnight; qualifying new chips and redesigning vehicle modules take months.
Here’s the issue: A Dutch chip maker called Nexperia got bought out by a Chinese company called Wingtech. The Trump administration then warned the Dutch that the Chinese were planning to move technology and production out of the Netherlands to China, so the Dutch government seized control of the company in September. China retaliated by prohibiting exports of Nexperia components that are made in China.
Voila: a brand new chip shortage.
Going Dutch
Nexperia may not produce the most advanced semiconductors, but it’s an essential, high-volume provider of automotive chips that control electronic systems in modern vehicles. Without them, automakers cannot assemble cars efficiently.
On September 30, the Dutch government invoked emergency powers to take control of Nexperia, citing concerns about technology transfer to the company’s Chinese parent, Wingtech. This action followed months of U.S. pressure, including adding Wingtech to the U.S. Entity List (thus requiring a special license for an American company wanting to trade with it) and extending export control restrictions to subsidiaries owned at least 50% by China.
Dutch officials described the intervention as a defensive step to protect European technological assets and maintain supply-chain security. While day-to-day operations have been left to the Chinese owners, strategic decisions now fall under government oversight.
China calls
On October 4, China’s Ministry of Commerce issued export controls prohibiting Nexperia China and its subcontractors from exporting certain finished components and sub-assemblies. Automakers immediately expressed concern.
The European Automobile Manufacturers’ Association warned that production could be significantly disrupted. In the U.S., the Alliance for Automotive Innovation, representing nearly all major automakers including General Motors, Ford, Toyota, Volkswagen, and Hyundai, urged a quick resolution.
“If the shipment of automotive chips doesn’t resume — quickly — it’s going to disrupt auto production in the U.S. and many other countries and have a spillover effect in other industries,” said CEO John Bozzella.
Supply-chain sequel
Modern vehicles rely heavily on electronics. Even models without luxury infotainment systems use Nexperia chips for electronic control units, powertrain management, safety systems, and more.
The disruption illustrates the fragility of the global supply chain. Automakers cannot simply switch suppliers overnight; qualifying new chips and redesigning vehicle modules take months. Even a small interruption can cascade, causing production delays, increased costs, or halted assembly lines.
Volkswagen and BMW reported that European production has not yet been impacted but said they were actively evaluating supply risks. In the U.S., exposure grows daily as plants rely on components sourced through European operations or shared supplier networks. Japan and other countries are already preparing for the negative impact.
Chips are down
The disruption could lead to short-term production slowdowns, with car plants in Europe, Japan, Korea, and potentially the U.S. reducing shifts, delaying vehicle launches, or postponing deliveries.
The need to find alternative suppliers, expedite shipping, or re-engineer components will increase costs, potentially raising vehicle prices for consumers.
Automakers are also likely to accelerate supply-chain restructuring, diversifying suppliers, resourcing production domestically, or redesigning vehicles to rely less on single-source components. If chip availability remains constrained, vehicles may arrive with fewer options or higher prices, impacting both buyers and dealers. This will not help a hurting industry.
Slow learners?
The Nexperia dispute highlights a growing reality: Automakers are navigating a geopolitical minefield. Governments increasingly treat technology and component supply as strategic assets, and decisions made halfway across the world can ripple through production lines almost instantly. It seems like the last chip shortage didn’t teach too many lessons.
Automakers must now consider geopolitical risk in procurement decisions, diversify suppliers, and maintain contingency stock. For consumers, vehicle availability, pricing, and features can be affected by forces far beyond local dealerships. Just like the last chip shortage, dealers raised prices to offset lack of supply and high demand.
In a world where electronics are as essential to cars as engines, supply-chain resilience is no longer optional — it’s critical. The Nexperia dispute is a warning sign, and for the auto industry, the stakes could not be higher.
Mark Levin reveals the leader he says could save Britain
Leftist policies have gutted Europe, with the U.K. and France serving as prime examples — once proud bastions of Western civilization, now barely recognizable as native cultures are systematically eroded under the guise of unchecked mass migration. Free speech is a relic of the past, crushed by tyrannical censors. Sky-high taxes strangle the working man, and suffocating bureaucratic overreach is the hallmark of these failing socialist regimes.
U.K. Prime Minister Keir Starmer sits at the helm of Britain’s descent into its dystopian nightmare.
“This is the guy that allowed these gang rapes by Pakistani immigrants of English girls that went on for years,” Mark Levin says, adding that under Starmer, “Crime is through the roof and mostly committed by recent immigrants” who are valued above natives.
England is a picture of what the United States was hurtling toward under Democratic rule. If Donald Trump hadn’t pulled our nation back from the cliff, Levin predicts we would’ve seen “the end” of America.
England needs its own Donald Trump now — a party that can effectively fight tyranny. Levin believes the Tories — the Conservative and Unionist Party — are the answer to Britain’s woes.
The party’s leader, Kemi Badenoch, is a woman Levin deeply respects and admires — a “superstar,” he calls her.
“She is brilliant. She is courageous. She is trying to defend Western culture and principles in Britain — the home of Western culture and principles,” he says.
He then plays a clip from Badenoch’s fiery parliamentary takedown of Keir Starmer’s weak-kneed Israel policy during a Middle East debate on October 14, during which she lambasted Labour’s appeasement of Hamas and vowed unyielding Tory solidarity with Israel’s fight against Islamist terror.
“The response from some in the West — the equivocation, the indulgence in whataboutery, and the drawing of false equivalence — shows how far moral clarity has eroded. And we have got a job to do here at home, Mr. Speaker, to fix this,” she fired.
She went on to praise President Trump for masterminding the Gaza ceasefire and condemned Starmer and his spineless Labour cronies for “rewarding terrorism” by recognizing Palestine sans hostage releases, for making “the wrong decisions time and again” that gutted Britain’s Middle East clout, and for their mealy-mouthed weakness that only emboldens Hamas butchers.
“She is fantastic,” Levin says.
“I hope she becomes prime minister,” he adds.
To hear more of his analysis, watch the clip above.
Want more from Mark Levin?
To enjoy more of “the Great One” — Mark Levin as you’ve never seen him before — subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.
Alabama Police Get Revenge Using ‘Old School Rules’ After High School Seniors Cover HQ With Toilet Paper
‘Perfected this craft years ago.’
Live updates: SNAP benefits in peril as shutdown persists; Obama to stump for Dems in VA, NJ
Federal food aid is on the line as the Supplemental Nutrition Assistance Program (SNAP) is poised to run out of money on Saturday amid the ongoing government shutdown. A federal judge on Friday ordered officials to tap emergency funds for the program and President Trump later indicated that he would follow through. But a plan…
Trump threatens military action in Nigeria, citing alleged killings of Christians
President Trump on Saturday told the Department of Defense (DOD) to “prepare for possible action” in Nigeria over alleged attacks on Christians in the African country. “If the Nigerian Government continues to allow the killing of Christians, the U.S.A. will immediately stop all aid and assistance to Nigeria, and may very well go into that…
Bill Maher trolls Trump over ‘kingly’ moves amid government shutdown
Comedian Bill Maher on Friday mocked President Trump for receiving a golden crown from South Korean President Lee Jae Myung during his trip to Asia. “He was in South Korea and the president there gave him a golden crown and Trump was very moved by it,” Maher said on his HBO show “Real Time with Bill…
Fetterman: Both Republicans and Democrats ‘get hungry’ without SNAP during shutdown
Sen. John Fetterman (D-Pa.) on Saturday called the effects of the government shutdown, including Supplemental Nutrition Assistance Program (SNAP) benefits not being issued for at least November, “wrong.” Speaking with Lara Trump on Fox News’s “My View,” Fetterman said he did not care “who’s behind” the shutdown, “it’s always wrong, and here we are.” “I…
Obama slams Trump while stumping for Spanberger, Sherrill
Former President Obama hit the campaign trail on Saturday, rallying supporters for Democratic gubernatorial candidates Abigail Spanberger and Mikie Sherrill at separate events in Virginia and New Jersey — while throwing some jabs at President Trump in the process. “Every day, this White House offers up a fresh batch of lawlessness and recklessness and mean-spiritedness…
