Stellantis boss expects chip supply to remain tight this year

2 minute read

A view shows the logo of Stellantis at the entrance of the company's factory in Hordain, France, July 7, 2021. REUTERS/Pascal Rossignol

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COMO, Italy, April 29 (Reuters) - The head of carmaker Stellantis (STLA.MI) does not expect improvement in the semiconductor supply chain before next year, he said on Friday.

"Semiconductor supply is still very short, the situation is very similar to that of 2021. I would say 2022 would not bring a major improvement," Chief Executive Carlos Tavares saidat an event in Como to promote Alfa Romeo's new sport utility vehicle (SUV) , the Tonale.

He added, however, that forecasts included in the carmaker's recent business had been "conservative" and would remain unchanged.

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Tavares said the main difference with last year was that the number of troubled suppliers was now smaller, with many having established better control of their operations and supply chains.

"At the moment Stellantis is hurt by a low number of chip suppliers, maximum three or four," he said, adding that he expects an improvement in 2023.

The CEO reiterated that the impact from Russia's invasion of Ukraine has so far been "very, very marginal" on the group's ' revenue. He said the conflict was making the business environment more difficult for all carmakers, not only Stellantis.

Stellantis, which houses brands including Fiat and Peugeot, said has not been affected so far by Russia's decision to halt natural gas deliveries to Poland, where the group runs three plants. read more

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Reporting by Giulio Piovaccari Editing by Keith Weir and David Goodman

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