Fri Oct 24 16:24:51 UTC 2025: News Article:
China’s Nexperia Export Ban Threatens German Auto Jobs Amid Trade Tensions
Salzgitter, Germany – A trade dispute between China and the Netherlands over chipmaker Nexperia is casting a long shadow over the European automotive industry, with German supplier Bosch preparing to furlough staff at its Salzgitter plant. The move comes after China banned exports of Nexperia’s finished products, a retaliatory measure following the Dutch government’s seizure of control of the company, whose Chinese owner Wingtech has faced national security concerns in the US.
Nexperia’s chips are essential components in numerous car parts, and the export ban is forcing Bosch and other suppliers to scramble for alternatives. While Bosch is actively seeking alternative suppliers and optimizing inventories, a spokesperson confirmed preparations for potential furlough measures at the Salzgitter plant, which employs approximately 1,400 people and serves as Bosch’s lead facility for motor control units.
Volkswagen also acknowledged potential short-term impacts on its production network, while BMW and Mercedes have warned of disruptions to their supply chains. A representative from the IG Metall union warned of a worsening situation, noting that some suppliers are already facing “severe difficulties” and implementing furlough schemes.
While industry sources suggest alternative chip suppliers like Infineon, NXP, and Texas Instruments are available, the time required for approval processes adds to the urgency. Automotive industry bodies are urgently calling for a political solution to the dispute. Dutch Prime Minister Dick Schoof has already addressed the issue with European leaders during a recent EU summit, highlighting the growing concern over the trade impasse and its impact on the European automotive sector. The industry is hoping for a swift resolution to avoid further production disruptions and job losses.
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