By Rachel More BERLIN -German car parts supplier Aumovio reported on Friday a 30% slump in its adjusted operating profit in the third quarter, in its first earnings report following the company's spin
Nexperia Resumes Chip Shipments Amid Germany's Optimism for De-escalation
By Rachel More, Christina Amann and Daniel Leussink
BERLIN/TOKYO -Semiconductor maker Nexperia has resumed some shipments of its vital chips, auto executives said on Friday, with Germany welcoming signs of de-escalation in a fight for control of the company that has rattled the car industry.
Nexperia, Chinese-owned but based in the Netherlands, makes billions of simple but ubiquitous chips for cars and other electronics. Supply of those chips has been snarled since a dispute between Amsterdam and Beijing over technology transfers.
"In principle, the de-escalation and continuation of negotiations between the Netherlands and China are very welcome at this point," a German economy spokesperson said.
Germany - Europe's biggest car manufacturer - remains hopeful that "short-term individual permits will quickly reach the industry", allowing Nexperia's chip shipments to resume, the spokesperson added.
AUMOVIO, HONDA REPORT MOVEMENT IN DELIVERIES
Germany's Aumovio, one of the automotive suppliers facing pressure on supply chains, has secured deliveries of Nexperia's chips from China, Aumovio's chief executive told Reuters on Friday.
It was the first supplier to confirm an exemption had been approved from Chinese export controls put in place after the Netherlands seized control of Nexperia, citing concerns about its Chinese parent Wingtech.
Honda, Japan's second-largest automaker, also reported signs of movement in its deliveries.
"As of now, we have received information that shipments have started in China," Honda Executive Vice President Noriya Kaihara said. "Looking ahead, it is difficult to say anything definitive," he said, adding the company was working towards resuming production at affected sites from late next week.
Honda suspended output at a Mexican plant last week and adjusted operations in the U.S. and Canada.
THREAT TO AUTO PRODUCTION IF NO SOLUTION FOUND
Nexperia said it couldn't confirm that its chip supplies had restarted. However, "we would assume that the flow of our products can resume soon" now that the Chinese trade ministry had said it would issue exemptions, a spokesperson said.
Wingtech declined to comment.
Automotive suppliers like Aumovio and ZF rushed to apply for exemptions while preparing to furlough workers at production sites if no solution was found.
European carmakers like Volkswagen cautiously held onto their 2025 forecasts in the third quarter as they limp towards the end of another bruising year, but have warned of looming chip shortages in their supplier networks.
($1 = 0.8575 euros)
(Additional reporting by Bernadette Hogg, Thomas Seythal, Christoph Steitz and Toby Sterling. Editing by Emelia Sithole-Matarise and Mark Potter)
