Renault and Stellantis cut some production as chip shortages bite

Renault and Stellantis cut some production as chip shortages bite [ad_1]

Carmakers around the globe have been hit by the scarcity of chips utilized in engine administration and driver-assistance techniques, which primarily come from Asia and particularly Taiwan.

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Renault and Stellantis are each suspending automobile production at a number of factories as they grapple with a worldwide shortage of crucial semiconductors, the businesses mentioned on Friday.

Carmakers around the globe have been hit by the scarcity of chips utilized in engine administration and driver-assistance techniques, which primarily come from Asia and particularly Taiwan.

Also Read | TSMC ramps up auto chip production as carmakers wrestle with shortages

The COVID-19 disaster has driven up demand for chips used in electronics such as laptops and telephones and producers are struggling to maintain up, with some Chinese suppliers additionally hit by U.S. sanctions by the previous Trump administration.

France’s Renault will droop production at one website in France and two in Morocco and Romania subsequent week for a number of days, an organization spokeswoman mentioned on Friday, with out giving particulars of the doubtless affect on output.

Also Read | Bosch says pandemic and chip shortage to weigh on carmakers in 2021

Stellantis, the carmaker born out of the merger of France’s PSA and Italy’s Fiat Chrysler, can be feeling the pinch.

The scarcity led it to droop production at its Eisenach manufacturing unit in Germany on Friday, the place it makes Opel automobiles, and its Zaragoza plant in Spain, which seems Citroens and Opels, was additionally affected, a spokeswoman mentioned.

Also Read | Germany urges Taiwan to help ease auto chip shortage

Union sources have advised Reuters that Stellantis deliberate to gradual production at its Melfi plant in Italy subsequent week and furlough 7,000 employees.

Other main carmakers together with Ford, Toyota Motor Corp and Volkswagen have also been affected by the shortage of semiconductors.

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