Automakers worldwide are planning production cuts as the global automotive supply chain faces disruption due to export restrictions on a China-owned semiconductor company based in the Netherlands.

Honda Motor Co. announced it has reduced or suspended production at some North American plants this week due to the chip shortage. The shortage stems from China's export restrictions on Nexperia BV, a subsidiary of China's Wingtech Technology Co. This move by China is seen as retaliation after the Dutch government invoked emergency powers to take over Nexperia to protect strategic production resources.

A Honda spokesperson stated that the company halved production at its Canadian plant, which manufactures Civic sedans and CR-V SUVs, while its Mexican facility halted operations on Tuesday.

Europe’s leading automotive lobby group warned in a Wednesday statement that automakers in the region may be forced to halt production within days. The European Automobile Manufacturers’ Association noted that carmakers are currently relying on dwindling chip inventories to keep factories running. Meanwhile, luxury automaker Mercedes-Benz Group AG said it has sufficient Nexperia chip stockpiles for the short term.

In the U.S., the Motor & Equipment Manufacturers Association cautioned that unresolved disputes over Nexperia could have a "significant impact" on American auto production within weeks.

Nexperia’s semiconductors are primarily used in automotive control systems, enabling functions such as windshield wipers and power windows.

Ford Motor Co. CEO Jim Farley described the Nexperia dispute as a "political" issue and confirmed he raised the matter with U.S. officials during a recent Washington visit.

General Motors Co. CEO Mary Barra told investors that the export restrictions "could affect production," while Stellantis NV stated in a release that it is "working with Nexperia and other suppliers to assess potential impacts and develop mitigation measures."

Toyota Motor Corp., the world’s largest automaker, indicated limited immediate production impact from the Nexperia restrictions. CEO Koji Sato said Wednesday, "Toyota has not been significantly affected so far," though he acknowledged it remains a risk—"just one of many serious challenges we face daily."

Nissan Motor Co. Chief Performance Officer Guillaume Cartier said the company has enough chip inventory to last through early November.

"This is no small matter," Cartier told reporters at a Tokyo auto show, adding that while Nissan has assessed short-term impacts on key suppliers, it has yet to evaluate downstream supply chain effects.