*

Nexperia stand-off risks chip shortages

*

Supplier Bosch preparing furlough option

*

VW says production secure for next week

*

Industry calls for political solution

(Rewrites with comments from Bosch)

By Rachel More

BERLIN, Oct 24 (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

"We are currently doing everything we can to serve our

customers and avoid or minimise production restrictions," a

Bosch spokesperson said in an emailed statement to Reuters.

"We have not yet made any adjustments to working hours at

our German locations, but are preparing to do so, particularly

in Salzgitter," she said, adding that potential furlough

measures were being prepared at the plant.

Salzgitter is Bosch's lead plant for motor control units for

combustion and electric vehicles, and employs about 1,400 staff.

Earlier on Friday, Volkswagen said it had

secured production in Germany for the coming work week across

the group, which includes the core VW brand and luxury

subsidiary Porsche.

"In view of the dynamic situation, however, short-term

impacts on the production network of the Volkswagen Group cannot

generally be ruled out," a spokesperson said.

BMW and Mercedes have also warned that

their supplier networks are affected.

SEEKING ALTERNATIVES, POOLING INVENTORIES

A regional representative of Germany's IG Metall union

warned on Friday of a worsening situation.

Some automotive suppliers are already seeing "severe

difficulties" and have started to announce furlough schemes for

workers, Horst Ott, IG Metall district manager in the southern

state of Bavaria, said at an industry event in Munich.

He did not mention any companies by name.

Bosch said it was drawing on alternative suppliers and

optimising inventories in its global production network in a bid

to prevent production stoppages.

Most Nexperia chips are manufactured in Europe but packaged

in China.

Industry sources say switching suppliers is possible, with

Infineon, NXP and Texas Instruments ( TXN ) possible

alternatives, but this takes time due to approval processes.

Auto industry bodies have called for a political solution.

Dutch Prime Minister Dick Schoof discussed the situation

with other European leaders during an EU summit in Brussels this

week.

(Additional reporting by Joern Poltz in Munich. Editing by Jan

Harvey and Mark Potter)