FILE PHOTO: The logo of Stellantis, the world's fourth-largest automaker which starts trading in Milan and Paris after Fiat Chrysler and Peugeot maker PSA finalised their merger, is seen next to a car displayed at the main entrance of FCA Mirafiori plant in Turin, Italy, January 18, 2021. REUTERS/Massimo Pinca/File Photo

Reuters

Renault and Stellantis cut some production as chip shortages bite

By Reuters | Posted - Feb. 5, 2021 at 7:19 p.m.


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PARIS (Reuters) — Renault and Stellantis are both suspending car production at several factories as they grapple with a worldwide shortage of crucial semiconductors, the companies said on Friday.

Carmakers around the world have been hit by the shortage of chips used in engine management and driver-assistance systems, which mainly come from Asia and especially Taiwan.

The COVID-19 crisis has driven up demand for chips used in electronics such as laptops and phones and manufacturers are struggling to keep up, with some Chinese suppliers also hit by U.S. sanctions by the former Trump administration.

France's Renault will suspend production at one site in France and two in Morocco and Romania next week for several days, a company spokeswoman said on Friday, without giving details of the likely impact on output.

Stellantis, the carmaker born out of the merger of France's PSA and Italy's Fiat Chrysler, is also feeling the pinch.

The shortage led it to suspend production at its Eisenach factory in Germany on Friday, where it makes Opel cars, and its Zaragoza plant in Spain, which turns out Citroens and Opels, was also affected, a spokeswoman said.

Union sources have told Reuters that Stellantis planned to slow production at its Melfi plant in Italy next week and furlough 7,000 workers.

Other major carmakers including Ford, Toyota Motor Corp and Volkswagen have also been affected by the shortage of semiconductors.

(Reporting by Gilles Guillaume; Writing by Sarah White; Editing by David Clarke)

© Copyright Thomson Reuters 2021

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