Semiconductor: Global chip shortage will easily drag into 2022: Stellantis CEO – The Economic Times

Clipped from: https://economictimes.indiatimes.com/small-biz/trade/exports/insights/global-chip-shortage-will-easily-drag-into-2022-stellantis-ceo/articleshow/84667762.cmsSynopsis

The global chip shortage comes as demand for cars has spiked during the global economy’s recovery from the coronavirus crisis, driving up prices of new and used vehicles.

NEW DELHI: The global semiconductor chip shortage that has hit automakers around the world and constrained vehicle production will easily drag into next year, the chief executive of the world’s No. 4 automaker, Stellantis, said on Wednesday.

The comments by Carlos Tavares at an Automotive Press Association event in Detroit echoed those made by Daimler AG earlier in the day.

“The semiconductor crisis, from everything I see and I’m not sure I can see everything, is going to drag into ’22 easy because I don’t see enough signs that additional production from the Asian sourcing points is going to come to the West in the near future,” Tavares said.

Stellantis is making decisions around changing the diversity of chips it intends to use, he said, adding the visibility around chips is not great. It takes roughly 18 months to re-engineer a vehicle to use a different chip because of the sophistication of the technology involved, he said.

The global chip shortage comes as demand for cars has spiked during the global economy’s recovery from the coronavirus crisis, driving up prices of new and used vehicles.

Some carmakers have adapted to the chip shortage by dropping features from their models, while others have built vehicles without the necessary chips and then parked them until their assembly can be finished later.

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