Chip shortage hits Stellantis, but CO2 targets will be reached in 2021
The worldwide shortage of semiconductors has prived Stellantis from producing 190 000 cars until now. Nevertheless, the group is doing well and can reach the 2021 emission regulations without help from others.
The manufacturing group warns that this shortage will persevere for quite a while and greatly impact the results of Q2. There are hopes that things will be better in the second half of the year, but the crisis could last well into 2022.
The shortage is impacting everyone. GM and VW already announced temporary stops in production, Renault has communicated that it will cost them at least 100 000 vehicles this year, and Ford has halved its production in Q2, etc.
Eight of the 44 factories of Stellantis throughout the world are hit by the shortage at the moment. Several solutions are implemented to attenuate the impact. The new 308 even gets an analog instrument panel as long as the digital one is unavailable.
Limited stocks push the managers to be as flexible and inventive as possible. “It also allows us to be as efficient as possible and lower our costs,” says CFO Richard Palmer.
Stellantis has done well already in 2021. Sales heightened by 11% and turnover by more than 14%. This indicates that Stellantis can increase the value of its sales even more than the sales volumes themselves.
Stellantis can sell vehicles with a larger number of options and higher levels of trim. In the US, for example, sales went down 4%, but turnover went up by 9%. In Europe, both figures are positive, but income increases more rapidly than sales volume (15% against 11%).
In China and South-East Asia, turnover rose by 35%, while sales were only +17%. Only in South America, the sales volume (+49%) rose more than turnover (+31%), but this was also due to exchange rate problems with the Brazilian real.
Electrification also saves money
In July, Stellantis will present its new strategic plan and the group’s ambitions. Meanwhile, CEO Carlos Tavares has already stressed that electrification will be one of the major key points for the next ten years.
In an interview with the French weekly Le Point, Tavares already announced that “with the electrical technology that PSA brought to Stellantis, we will autonomously meet carbon dioxide emission regulations as early as this year. Thus, we will not need to call on European CO2 credits, and FCA will no longer have to pool with Tesla or anyone else.”
Over the 2019-2021 period, FCA spent about 2 billion euros on buying European, and US CO2 credits from electric vehicle manufacturer Tesla. A spokesman of Stellantis said that the company is now in discussions with Tesla about the financial implications of the decision to stop the pooling agreement.
“As a result of the combination of the PSA and FCA Groups, Stellantis will be in a position to achieve C02 targets in Europe for 2021 without pooling arrangements with other automakers,” he declared.