Europe’s automotive industry is facing a new shock that threatens to paralyze entire factories and put thousands of jobs at risk. The European Automobile Manufacturers’ Association (ACEA) warned on Wednesday that the shortage of microchips, worsened by the trade standoff with China, could force production to halt “within days.”
According to the association, the Chinese authorities’ decision to ban exports from Nexperia —a former Dutch company acquired by Chinese capital in 2019— has caused a disruption in the supply of essential components for vehicles’ electrical systems. “The situation is becoming more critical by the day for the automotive industry,” said ACEA’s Director General Sigrid de Vries, urging European governments to “redouble their diplomatic efforts” before the damage becomes irreversible.
Manufacturers—including BMW, Renault, Stellantis, Daimler, and Volkswagen—are already operating with their last remaining reserves. However, stockpiles are running out quickly, and the window for reaction is closing fast. “Production stoppages could begin within days,” warn industry sources. While alternative suppliers exist in Asia and the United States, developing the capacity needed to replace Nexperia would take “several months.”
The trade conflict originated when the Dutch government decided to intervene in Nexperia’s local subsidiary, citing national security concerns. The move sought to prevent the transfer of knowledge to China—but Beijing’s reaction was swift: a ban on chip exports to Europe.
The result has been a blockade that highlights how Europe preaches strategic autonomy while handing over key sectors to foreign control. Microchips—the ‘brains’ of modern vehicles—have become a bottleneck exposing the continent’s industrial vulnerability.
At the same time, China continues to restrict the export of rare earths and other critical materials essential for semiconductor and battery production. Since April, European companies have had to apply for special permits to access these inputs—a slow and highly conditional process. Beijing is playing with Europe’s dependency, and it is doing so with the calm confidence of one holding all the cards.
Adding to this scenario is a new political front: the possible ban on hybrid vehicles before 2035. The measure, promoted by the most radical sectors of European environmentalism, aims to accelerate the transition to fully electric cars. However, manufacturers warn that such a decision would leave the industry even more dependent on China, the world leader in battery and electronic component production.
The problem is not merely temporary but structural. European industrial policy appears more focused on satisfying ideological goals than on protecting its productive base. Brussels speaks of ‘strategic autonomy,’ yet it lacks chip factories, raw materials, and a competitive fiscal framework.
This Thursday, a technical delegation from China’s Ministry of Commerce will visit the European capital to meet with the Commission and discuss the crisis. Meanwhile, Europe’s assembly lines are slowing down—and its workers wait in growing uncertainty.
