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BMW says production continuing as planned

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Chipmaker Nexperia caught up in US-China trade war

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Volkswagen says output unaffected, Mercedes monitoring

situation

(Adds context, Mercedes and Volkswagen comments throughout)

By Rachel More

BERLIN, Oct 16 (Reuters) - German automaker BMW

said on Thursday that parts of its supplier network

were being affected by a trade and intellectual property dispute

over chipmaker Nexperia, which faces export restrictions in both

the U.S. and China.

Netherlands-based Nexperia, one of the largest makers of

basic chips used in cars and consumer electronics, is caught up

in a trade war between the world's two biggest economies, with

U.S. President Donald Trump ratcheting up pressure on tech as

China curbs rare earth exports.

The troubles at Nexperia have raised concerns over possible

knock-on effects for Europe's automotive sector, with carmakers

and their suppliers already battling tariffs, foreign

competition and weak demand.

BMW SAYS PRODUCTION CONTINUES AS PLANNED

"Parts of our supplier network are affected," a BMW

spokesperson told Reuters when asked about the issue.

"We are in close contact with our suppliers and continuously

assess the situation in order to identify potential supply risks

at an early stage and take appropriate measures if necessary,"

the spokesperson said in an emailed statement.

Production continues at BMW's plants as planned, he added,

without giving details on the supplier problems.

Mercedes-Benz said it was monitoring the situation

and in touch with relevant stakeholders, without giving further

details. A spokesperson declined to say whether Nexperia was

part of the company's supplier network.

Volkswagen said its production was unaffected

and that it was in contact with stakeholders in order to respond

to any risks if necessary.

Nexperia said on Tuesday it was seeking talks over the

export restrictions in China and the United States. It also said

a new interim CEO had been put in place.

Former CEO Zhang Xuezheng was removed on a Dutch court order

after U.S. pressure on the company, according to a court ruling.

The Dutch government said on Sunday it had taken control of

Nexperia, citing worries about the possible transfer of

technology to its Chinese parent company, Wingtech.

Nexperia chips are not technically sophisticated but are

needed in large volumes. Its biggest manufacturing site is in

Hamburg, Germany, but most of its chips are packaged and

assembled into larger products in China.