Tavares claims that a shortage of chip will quickly lead to a lack of chips

Tavares claims that a shortage of chip will quickly lead to a lack of chips 2022

Tavares claims that a shortage of chip will quickly lead to a lack of chips

DETROIT — A global shortage of semiconductor chips has hit carmakers all over the globe and will limit vehicle production into the next year, according to Stellantis CEO, who is the No. On Wednesday, the No. 4 automaker stated.

Carlos Tavares’ comments at the Detroit Automotive Press Association event mirrored those of Daimler AG earlier that day.

Tavares stated that the semiconductor crisis will drag into 22 because he doesn’t see sufficient signs of additional production coming from Asia sourcing points to the West.

Global chip shortage occurs as global demand for cars spikes after the recovery of the coronavirus crises, which has driven up the prices of both new and used vehicles.

Automakers are adapting to chip shortages by dropping certain features from their vehicles, while others build cars without the required chips and park them until they can be assembled later.

Stellantis has made decisions about changing which chips it will use. He said that it takes around 18 months to redesign a vehicle so that it can use a different chip due to the complexity of the technology.

Stellantis CEO Tavares stated that Stellantis would continue to prioritise its most profitable models using the chips it receives, echoing a rival’s approach.

On Wednesday, Daimler stated that the shortage of chip chips would affect car sales for the second half 2021 and into 2022. Harald Wilhelm, Daimler’s chief financial officer, said that the chip shortage will be much less this year.

Sweden’s Autoliv (the world’s biggest maker of seat belts and airbags) said last week that the shortage may continue into 2022.

Tavares said Wednesday that Stellantis might, if necessary, increase planned electrification spending beyond what it had previously indicated, which is more than 30 Billion euros. This would be in addition to the 2025 plan, which was for over 30 billion euro. It could also increase the number or capacity of existing battery plants.

Tavares stated that Stellantis would build three battery plants in Europe, and two in North America. One of the North American plants, at least one, will be located in America. These sites will be revealed before the year ends.

Tavares stated that he expects the public to accept electric cars as more people become concerned about climate change and events such as flooding in Europe.

Stellantis also stated that Stellantis had plans to save 5 billion euro (US$5.89 trillion) annually through the January merger between Fiat Chrysler, an Italian-American automaker Fiat Chrysler, and France’s PSA.

Publiated at Wed 21 July 2021, 18:47.42 +0000

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