Stellantis CEO, Carlos Tavares, Predicts Chip Supply For Cars Still Tight Until Next Year

Alfa Romeo of the Stellantis family is still facing chip problems until next year. (photo: twitter @AlfaRomeo_Fra)

JAKARTA – Stellantis CEO, Carlos Tavares, expects the semiconductor supply chain to remain tight until the end of next year. This was said in an interview published on Sunday, October 2 in the French newspaper Le Parisien.

"The situation will remain very complicated until the end of 2023, then it will ease up a bit," Tavares said. "Semiconductor manufacturers are interested in doing business with us again, mainly because they are raising prices."

Over the past few years, a shortage of semiconductor chips, caused in part by the impact of the COVID-19 pandemic, has forced global automakers to cancel plans to produce millions of cars. These shortfalls have now been reduced, but at a new and permanent cost to car companies.

In France, scarcity continues to weigh on manufacturers' sales. While new car registrations increased 5% last month, according to industry figures published on Saturday, they have remained down nearly 12% since the start of the year.

The weakening chip supply chain has forced Stellantis to close its factories or not produce cars in Spain until the end of this year. They hope to reopen next year if chip supply conditions improve.