BERLIN (Reuters) -German auto parts supplier ZF is planning to furlough workers at its Schweinfurt site due to a limited supply of semiconductors, a union representative said.

“The specific arrangements are currently being negotiated with the works council,” an IG Metall union representative told Reuters.

The company did not immediately respond to an emailed request for comment.

A stand-off over Dutch chipmaker Nexperia has led to concerns of possible production stoppages for carmakers, with the chips used widely by their suppliers like ZF.

On Monday, Volkswagen said recent talks between the U.S. and China “signalled a possible easing of trade tensions and export restrictions”.

Europe’s top carmaker said the group was continuing to monitor the situation and would take appropriate meas

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