GM, Ford Stocks Slip As China-Dutch Chip Dispute Over Nexperia Sparks Fresh Supply Chain Fears

Shares of General Motors and Ford fell on Thursday as major automakers warned that a deepening semiconductor disruption tied to a dispute between China and the Dutch government could soon hit U.S. and European vehicle production.

General Motors’ stock slipped 0.8% to close at $57.34 on Thursday, while Ford’s stock edged 0.2% lower to $11.74. 

Automakers Warn Of Supply Chain Risks

The European Automobile Manufacturers’ Association (ACEA) said carmakers and suppliers had been notified by chipmaker Nexperia that it could no longer guarantee deliveries, warning that manufacturing could be significantly disrupted. The notice comes as automakers already face supply-chain pressure from tariffs, foreign competition, and softening demand, according to a Reuters report.

In the U.S., the trade group Alliance for Automotive Innovation, whose members represent automakers such as GM and Ford as well as Toyota, Volkswagen, Hyundai, Stellantis and other companies, urged both governments to resolve the issue quickly before it worsens. 

John Bozzella, the group’s CEO, said if chip shipments don’t resume soon, auto production in the U.S. and elsewhere will be disrupted with consequences for other parts of the economy.

Some automakers said that U.S. production could be affected as early as next month. The chips made by Nexperia, although not technically advanced, are produced in large volumes and are essential for manufacturing vehicle parts and components.

Nexperia At Center Of Dispute

The dispute began after the Dutch government moved on Sept. 30 to take control of Nexperia, a Chinese-owned chipmaker, citing national security worries about technology potentially flowing to its parent company, Wingtech, which is already under U.S. export restrictions. 

Just days later, on Oct. 4, China’s commerce ministry struck back, blocking Nexperia’s Chinese operations and subcontractors from exporting certain parts and subassemblies.

Carmakers Brace For Fallout

Stellantis, whose brands include Jeep, Peugeot, and Fiat, said it was collaborating with Nexperia and other suppliers to assess potential impacts and develop mitigation measures. Meanwhile, Automakers including Volkswagen and BMW said their European plants have not yet been affected but are monitoring supply chains closely.

Retail-Trader Sentiment For GM, Ford Split

On Stocktwits, retail sentiment toward General Motors was ‘bullish’, while sentiment for Ford was ‘neutral’, with both tickers seeing ‘low’ message volume.

While Ford’s stock has risen 26% so far this year, General Motors’ stock has climbed 9% over the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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