Currently reading: New chip crisis grows as VW admits it has only a week of supply left

Political battle between the US and China is now seriously affecting European car manufacturers

A growing semiconductor shortage could bring European production lines to a standstill, car makers are being warned, as the Volkswagen Group has admitted that it currently only has enough chips to last “until the end of next week”.

The growing crisis has been caused by China suspending exports of chips made by Nexperia, as part of a political dispute with the US.

This followed the Dutch government’s decision, under pressure from the Trump administration, to take control of the Netherlands-based company last month, citing intellectual property concerns caused by its Chinese ownership.

Register for free to access this article
  • Instant access to all Autocar Business news
  • Regular email newsletters
See all benefits here