European carmakers face ‘devastating’ chip shortages, FT reports

European carmakers and industrial companies are facing “devastating” chip shortages which may cause global production lines to halt despite China agreeing to lift export restrictions, Andry Bounds and Kana Inagaki of The Financial Times reports. Nexperia’s Dutch arm has not been sending parts to its Chinese subsidiary to be assembled due to continued hostility between the two sides of the company, according to car industry officials. Nexperia makes basic low-margin chips used in systems in cars, with the key components made in the U.K. and Germany, they are sent to its Chinese arm to be assembled then re-exported. European carmakers include Mercedes-Benz (MBGYY), BMW (BMWYY), Volkswagen (VWAGY), Audi (AUDVF), and Renault (RNSDF).