Stellantis CEO Tavares: Chip crunch to continue through 2023

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Stellantis CEO Tavares: Chip crunch to continue through 2023
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Here’s when Stellantis CEO Carlos Tavares thinks the microchip shortage will end:

PARIS -- Stellantis CEO Carlos Tavares said supplies of semiconductors will remain tight until the end of next year, according to an interview published in a French newspaper.

"The situation will remain very complicated until the end of 2023, then will ease a little," Tavares told the newspaper Le Parisien, adding that"semiconductor manufacturers have an interest in making business with us again, especially as they are raising prices.” Starting at the end of 2020, shortages of semiconductor chips due to the impact of the COVID-19 pandemic and other factors have forced global automakers to scrap production plans for millions of cars. Shortages are now easing, but at a new and permanent cost to the car companies.

A top Volkswagen group executive said last month that VW also expects shortages to continue through next year. In France, shortages continue to weigh on sales. While new car registrations increased by five per cent last month, according to industry figures published on Saturday, they remained down nearly 12 per cent since the start of the year.

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