EU carmakers ‘days away’ from factories halting work in chip war with China

Chip shortages causing problems for car manufacturers in Europe and Japan after China banned exports of Nexperia chips near the start of the month

The European Automobile Manufacturers’ Association issued an urgent warning on Wednesday saying its members, which include Volkswagen, Fiat, Peugeot and BMW, were now working on 'reserve stocks, but supplies are dwindling'. Picture: Stuart Franklin/Getty Images

Carmakers in the EU are “days away” from closing production lines, the industry has warned, as a crisis over computer chip supplies from China escalates.

The European Automobile Manufacturers’ Association (ACEA) issued an urgent warning on Wednesday saying its members, which include Volkswagen, Fiat, Peugeot and BMW, were now working on “reserve stocks, but supplies are dwindling”.