By Rachel More

BERLIN (Reuters) -German auto parts supplier Bosch is preparing to furlough staff at its Salzgitter plant if a trade dispute between China and the Netherlands over Dutch chipmaker Nexperia is not resolved soon, amid mounting concerns in Europe’s beleaguered car industry.

Bosch and other suppliers are scrambling for alternatives after China banned exports of Nexperia’s finished products in response to the Netherlands seizing control of the company, whose Chinese owner Wingtech has been flagged by the U.S. as a possible national security risk.

Because Nexperia’s chips are widely used in car parts, the stand-off risks adding to problems for Europe’s auto sector on top of U.S. tariffs and Chinese curbs on rare earths.

VW PRODUCTION SECURE FOR NEXT WEEK

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