Carmakers Push to Secure Chips as China Trade Spat Escalates (1)

Automakers are bracing for fresh potential chip disruption, with China’s retaliatory export controls on an obscure Dutch supplier threatening to set off a chain reaction that could halt production lines.

Manufacturers in Europe are holding urgent meetings to fend off potential outages that could come within a month, according to people familiar with the matter.

The industry has upped inventories after the pandemic sparked previous chip shortages. But carmakers like Volkswagen AG and suppliers including Robert Bosch GmbH may take months to switch from Nexperia — the Dutch producer affected — to alternative sources, the people said, who asked not ...