China To Relieve Looming Chip Shortage By Opening Up Exports To Some Companies

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Happy Monday! It's November 3, 2025, and this is The Morning Shift — your regular roundup of nan apical automotive headlines from astir nan world, successful 1 place. This is wherever you'll find nan astir important stories that are shaping nan measurement Americans thrust and get around.

In this morning's edition, we're looking astatine a break for companies deed by nan caller spot shortage, arsenic good arsenic nan authorities of affairs astatine ZF. We'll besides look astatine Tesla's continued downward spiral successful Europe, and really nan extremity of nan U.S. EV taxation in installments deed our Korean automakers. 

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A caller spot shortage has been looming complete nan world automotive market, going truthful acold arsenic to unopen down American Honda accumulation owed to deficiency of parts supply. Now, though, it seems for illustration there's a chance for immoderate companies to get chips again — but only a chance. From Automotive News:

China said it will let companies deemed eligible to beryllium exempted from its export prohibition connected Nexperia's semiconductor chips, a spokesperson for nan Ministry of Commerce said Nov. 1 successful a statement.

The connection was made aft China's export prohibition connected nan Dutch semiconductor spot supplier forced Honda Motor Co. to suspend accumulation successful North America and spurred different world automakers to pass of imminent spot proviso shortages

...

The ministry didn't specify erstwhile nan exceptions would beryllium granted aliases return effect.

It sounds for illustration nan Trump management wants to return in installments here, aft waste and acquisition negotiations pinch China, but this announcement has nary specifications connected which companies will beryllium allowed to get chips from Nexperia — fto unsocial really galore chips, aliases erstwhile they'll beryllium made available. There are plentifulness of questions that still request answers. 

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Last week ZF trim output of its components acknowledgment to nan spot shortage. This week, things are getting worse. The institution has now announced it plans to furlough workers, though it hasn't yet announced really many. From Reuters:

German car parts supplier ZF (ZFF.UL) is readying to furlough workers astatine its Schweinfurt tract owed to a constricted proviso of semiconductors, a national typical said.

"The circumstantial arrangements are presently being negotiated pinch nan useful council," an IG Metall national typical told Reuters.

The institution did not instantly respond to an emailed petition for comment.

A stand-off complete Dutch chipmaker Nexperia has led to concerns of imaginable accumulation stoppages for carmakers, pinch nan chips utilized wide by their suppliers for illustration ZF

The national apt isn't going to want immoderate of its workers furloughed, particularly pinch this caller announcement that chips could beryllium making their measurement backmost to businesses soon. We'll person to spot wherever nan business goes from here, but it could beryllium connected its measurement to a solution — if a later 1 that companies and workers would like. 

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Tesla has been really struggling successful Europe, acknowledgment to a operation of nan company's aging lineup and its CEO's authorities — a group of opinions that are acold to nan correct successful nan United States, itself a federation acold to nan correct of astir of Europe. Fewer and less group are consenting to ammunition retired for a dated conveyance truthful profoundly associated pinch Musk complete successful nan EU. From Reuters:

Tesla's income plunged successful October successful a number of European countries including Spain, nan Netherlands and Nordic markets successful nan latest motion that nan U.S. electrical conveyance maker's struggles connected nan continent continue.

Tesla had seen income emergence successful a number of European markets successful September, aft falling for astir of this twelvemonth owed to expanding title to its ageing lineup from newer EV models.

The automaker's caller car registrations – a proxy for income – dropped 89% successful Sweden, 86% successful Denmark, 50% successful Norway and 48% successful nan Netherlands, section manufacture information showed. Its income successful Spain were down 31% successful October, while industry-wide income of fully-electric and plug-in hybrid models jumped 119%.

Seems bad, Elon! Good point you canceled nan affordable car to attraction connected nan Cybertruck and autonomous taxi. Surely these are amended investments of time, money, and effort. 

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Hyundai and Kia make immoderate awesome EVs, but those EVs conscionable mislaid a awesome trading constituent successful nan U.S.: Their taxation credit. Now, predictably, income of nan Ioniq 5, Ioniq 6, EV6, and EV9 are down. From Automotive News:

U.S. income fell astatine Hyundai and edged up somewhat astatine Kia successful October arsenic electrical conveyance request slumped pursuing nan expiration of national taxation credits.

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While hybrid deliveries jumped 41 percent, income of 2 of Hyundai's halfway EVs ― nan Ioniq 5, down 63 percent, and Ioniq 6, disconnected 52 percent ― fell sharply. Kia's topselling EVs, nan EV6 and EV9, saw moreover steeper declines past month.

"We saw beardown EV request starring up to nan expiration of national taxation credits, and while that displacement has temporarily disrupted nan market, we're assured it will reset," Randy Parker, CEO of Hyundai Motor North America, said successful a statement. "Hyundai's momentum remains strong, and we're connected gait for grounds unit and full income for nan year."

Hyundai has to sound assured here, because that's what investors want to hear, but nan nonaccomplishment of nan EV taxation in installments is simply a awesome rustle to companies that nutrient EVs. It's besides a awesome rustle to anyone who wants a breathable ambiance to stay astir a habitable planet, but I guess we're not doing thing astir that one. 

I don't want to deliberation astir this past weekend's World Series. I will dice for my country, nan eastbound coast.