Market: “Very complicated” situation for chips until the end of 2023, says Tavares (Stellantis)

PARIS (Reuters) – The supply of semiconductors to car manufacturers will remain difficult until the end of next year, said Carlos Tavares, the general manager of Stellantis, in an interview published on Sunday by Le Parisien.

The entire automotive market has been disrupted since last year by shortages of chips, linked among other things to the impact of the COVID-19 crisis on supply chains and changing consumption patterns in the major industrialized countries during periods of confinement.

“The situation will remain very complicated until the end of 2023, then will relax afterwards, in particular because the consumer electronics market is plunging a little,” Carlos Tavares told Le Parisien during an interview with his Renault counterpart. Luca de Meo.

“Semiconductor manufacturers have an interest in doing business with us again. Especially since they are happily raising their prices,” he added.

Carlos Tavares estimated that the massive investments announced in the European Union and the United States to promote the relocation of semiconductor manufacturing, which is currently hyper-concentrated in Asia, should promote a gradual return to normal.

“When these investments materialize, there will be semiconductors, and even an overabundance. But we will have to wait at least three years,” said the CEO of the Franco-Italian group which owns the Peugeot, Citroën and Fiat brands, among others. .

“Today I have trouble finding the basic chip that raises and lowers the window. Without it, I cannot produce the car”, he regrets in this interview.

The shortage of semiconductors continues to weigh on manufacturers’ sales in France: while new car registrations increased by just over 5% last month according to figures from the Automotive Platform (PFA) published on Saturday, they remain down nearly 12% since the start of the year.

(Written by Marc Angrand)

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