It isn't even thinking ahead. It is pure, plain and simple arrogance, of the most despicable and stupid kind. The German auto producers are used to be able to strong-arm politicians and their suppliers. What they say goes, because usually they can threaten whole regions with unemployment and whole companies (the ones that produce car-parts such as seat cushions or engine parts mostly/only) with bankruptcy. Don't want to accept a mandatory 20% price reduction mid-contract? We'll just delay payment until you do, good luck surviving long enough for the courts to recognize your claim...

With chip makers, it is different, because chips can be used in lots of different products and there is lots of demand from all corners. So car makers tried their usual strong-arm tactics and failed miserably. Chips being a sellers market, after all. After which car makers went whining to their politician puppets, getting them to OK billions in subsidies for "supply chain security".

Yes, the german automotive industry is used to extort and exploit their suppliers.

It must have been a shocking experience for them that chip manufacturers have alternative buyers.

The nice thing about this situation and one that is not appreciated by enough people in the economy is that it's not a zero sum game.

Two things can be true at the same time!

I don't know why this is downvoted but it's more or less correct regarding the industry here in Europe.