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Chip supply crunch likely to hit Q1 auto output, industry groups says

December 8, 2020

A shortage of certain chips may start to have a big impact on vehicle production at some Chinese companies in the first quarter next year, a senior industry executive said on Tuesday, which may cast a shadow over the global auto sector’s recovery.

Automobiles have become increasingly dependent on chips — many of them made in Europe — for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking.

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