Renault And Stellantis Cut Some Production Due To Chip Shortage: Report

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  • The report said that the COVID-19 crisis has driven up demand for chips used in electronics such as laptops and phones and manufacturers are struggling to match up
  • Other major carmakers including Ford, Toyota Motor Corp and Volkswagen have also been affected by the shortage of semiconductors

As per a report by Reuters, Renault and Stellantis are both suspending car production at several factories as they deal with a worldwide shortage of crucial semiconductors, the companies said.It added that 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.

Driven up demand for chips used in electronics

The report said that the COVID-19 crisis has driven up demand for chips used in electronics such as laptops and phones and manufacturers are struggling to match up. It added that 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. She did not give details of the likely impact on output.

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Stellantis, the carmaker coming out of the merger of France’s PSA and Italy’s Fiat Chrysler, is also feeling the effect added the report. 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 brings out Citroens and Opels, was also affected, a spokeswoman said. Other major carmakers including Ford, Toyota Motor Corp and Volkswagen have also been affected by the shortage of semiconductors.

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