Stellantis chief executive Carlos Tavares expects the global semiconductor shortage to continue into next year.
While speaking during a recent Automotive Press Association event in Detroit, Tavares wasn’t optimistic about things returning to normal anytime soon.
“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,” he said.
A number of car manufacturers are dropping certain features from models due to the shortage while others, such as Ford, are building vehicles without the necessary chips and have plans to install them when they become available. Tavares revealed that Stellantis is making decisions around changing the diversity of chips it intends to use but noted it takes about 18 months to re-engineer a vehicle to use a different chip.
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As it stands, the car manufacturer will continue to prioritize its highest-profit models with the chips that it is receiving, Auto News notes.
While speaking at the same event in Detroit, Tavares added that Stellantis has the ability to boost its planned spending on electrification beyond the €30 billion it has already committed through 2025. He also revealed the company could build more than the five battery plants it is currently working on, or raise the capacity of these plants.
Three of Stellantis’ battery plants will be located in Europe while two will reside in North America, including at least one in the United States.
