Chip shortage impact expands, core suppliers of Volkswagen and BMW forced to cut production.

``` According to a report by Daily Economic News, a recent battle for control has erupted around Nexperia. As the world’s largest supplier of basic semiconductor devices, Nexperia’s headquarters in the Netherlands was forcibly taken over due to political intervention, and China’s Ministry of Commerce promptly suspended export licenses for its Chinese factories. This turmoil has plunged the global automotive supply chain into crisis. Sources have revealed to the media that a key supplier to several automakers, including Volkswagen AG and BMW AG, is reducing production in Germany due to a semiconductor shortage. Sources told the media that ZF Friedrichshafen AG has already cut the number of shifts at its main electric drive plant in Schweinfurt because the supply of key components has become tight. ZF supplies most major car manufacturers, including Mercedes-Benz, Stellantis, and Ford. A ZF spokesperson responded to the media via email: “We are working with customers and suppliers to keep the supply chain reliant on Nexperia products stable, and are assessing alternative sourcing options.” ZF’s Schweinfurt plant employs around 8,000 people and is one of the company’s most important global sites. This plant is the core ZF factory for motor production, and it also makes chassis and drive systems for both fuel vehicles and electric vehicles, thus holding a key position in ZF’s electrification strategy. Elsewhere in Germany, Robert Bosch GmbH is preparing to shorten working hours at its Salzgitter plant. This plant makes electronic control units and requires a continuous supply of components to keep operating. Audi Lowers This Year's Financial Target Volkswagen, whose brands include Audi, Lamborghini, Bentley, and Ducati, warned on Thursday that its ability to reach financial targets would depend on whether enough semiconductors can be obtained. Its Audi Group lowered this year’s financial targets due to “fierce” competition and economic challenges, including US tariffs. Audi now expects an operating profit margin of 4% to 6% this year, whereas previous expectations were as high as 7%. Audi said that fellow group member Porsche scaling back electric vehicle development goals also added pressure. CFO Jürgen Rittersberger told reporters in a conference call, “The current situation remains extremely severe.” He noted that the brand expects to lose 1.3 billion euros ($1.5 billion) this year due to tariffs. He said Audi will also need to find alternatives for electric vehicle platform models that were originally planned to be jointly developed with Porsche, as the launch of the cooperation platform has been delayed. Audi said its ability to meet financial targets also depends on whether enough semiconductors can be obtained. With chip supply disrupted, manufacturers face the risk of production stoppages. In addition to the renewed escalation of supply chain risks, as part of the Volkswagen Group, Audi is seeking to streamline its business and cut costs, while also pushing forward with its largest-ever new model offensive. In the third quarter, Audi’s operating profit margin was 2% with profits of 280 million euros. In the same period last year, due to costs related to closing the Brussels plant, the brand recorded a slight loss. Risk Disclaimer The market involves risks and investment should be done cautiously. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Those who invest based on this information do so at their own risk. ```