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Dutch Court Orders Nexperia Probe, Extends CEO Suspension and Maintains Interim Control

The ruling preserves emergency controls to stabilize operations during a months-long governance review.

Overview

  • Judges at the Enterprise Chamber cited indications of negligent conduct and a conflict of interest, including Zhang Xuezheng’s ownership links to a Shanghai plant and unilateral strategy shifts under looming U.S. sanctions.
  • Interim measures continue with a temporary director in place and nearly all shares held by a court-appointed administrator, leaving day-to-day control with Nexperia’s European management.
  • The court said it will appoint investigators and expects the inquiry to take several months, reviewing governance from late 2023 and recent supply-chain breakdowns between European and Chinese units.
  • Wingtech denounced the decision and is pursuing legal remedies, signaling potential international arbitration and damages claims of up to about US$8 billion, as China’s Foreign Ministry criticized Dutch intervention.
  • Automakers have faced ongoing disruption after the 2025 export curbs and internal rifts at Nexperia, with companies such as Honda halting production and others, including Mercedes-Benz, securing alternative supplies.