Stellantis' Car Production Chopped By Chip Shortage

Automaker Stellantis said Thursday that the shortage of computer chips plaguing the car industry caused its production to come in nearly a third below plans. The group which includes the Jeep, Chrysler, Fiat, Peugeot and Citroen brands, said it manufactured 600,000 vehicles, or 30 percent fewer than it had planned, during the July through September period.

Sales, at 1.1 million vehicles, were down by 27 percent from the same period last year, before the Fiat-Chrysler and PSA groups merged.

The company said that the shortage of semiconductors was worse than it had predicted even as late as August, but that supplies were now stabilising.

The chip shortage had already prevented Stellantis from building 700,000 vehicles in the first two quarters of this year.

Computer chips are a key component in several systems in both conventional and electric vehicles, and the shortage has hobbled production at most automakers.

The chip shortage had already prevented Stellantis from building 700,000 vehicles in the first two quarters of this year.

The company believes the lost output should not exceed 1.4 million vehicles for the year.

Due to a lack of chips, Stellantis had to temporarily halt production at assembly plants in France, Spain, German and Turkey.