In October 2025, the German automotive sector was plunged into a production - halt crisis as the chip supply situation took a turn for the worse. Following several consecutive days of Nexperia either reducing or completely suspending chip supplies, the German Ministry of Economy called for an emergency meeting. This supply disruption had a direct and severe impact, causing production lines at major automakers like Volkswagen, BMW, and Mercedes - Benz to grapple with urgent shortages.

At Volkswagen's Wolfsburg plant, the production of Golf and Tiguan models teetered on the edge of suspension, with the new - energy vehicle production line being the first to grind to a halt. According to Germany's Bild newspaper, if the supply - chain issues remain unresolved by the end of the month, the industry could suffer losses exceeding €20 billion, and as many as 100,000 jobs could be at risk.

The immediate cause of this crisis was geopolitical interference. The Dutch government, citing "national security" concerns, froze the assets of Nexperia, a company under Chinese capital control. This action led to a supply disruption from its Dongguan factory in China, which is responsible for handling 70% of the global automotive - grade chip packaging and testing tasks. In response, China implemented export control measures, further exacerbating the supply disruption.

German automakers have a high level of dependence on Chinese chips. By 2025, China's automotive chip exports had captured 42% of the global market, with power chips, MCUs, and sensors accounting for over 60% of this share. In German new - energy vehicle models, Chinese chips make up as much as 50% of the automotive electronics cost and are extremely difficult to replace in the short term.

Currently, the chip inventory in the German automotive industry can only sustain production for 10 to 20 days. Inventories at Volkswagen and other companies have dropped below safety levels. Although the German government has announced an investment of €20 billion to rebuild its chip industry, experts have pointed out that it will take at least five years to restore production capacity.