The Nexperia dispute highlights the susceptibility of automotive supply chains to geopolitical factors.

The semiconductor shortage linked to Nexperia, a Dutch chip manufacturer, serves as a critical alert for the automotive industry, according to Moody's Sapna Amlani. She emphasizes the need for automakers to diversify their supply chains to mitigate disruptions from geopolitical events and internal corporate conflicts. Amlani suggests strategies such as multi-sourcing key components and implementing stringent quality control measures. Regular stress-testing of supply chains is also essential, as it can reveal vulnerabilities and ultimately save costs by avoiding future disruptions.