Tang Weishi, CEO of Stellantis: chip shortage will last until 2022

According to foreign media reports, Stellantis CEO Tang Weishi (Carlos Tavares) said on July 21 that the global chip shortage has had a serious impact on car companies around the world, limiting car production, and the situation will continue until next year.

"from what I have seen, the semiconductor crisis will last until 2022 because there are not enough signs that Asian chipmakers have enough chips to supply the West," Tang said. "

The chip shortage comes as the global economy recovers from the novel coronavirus crisis as consumer demand for cars surges, pushing up the prices of new and used cars.

Some carmakers cope with chip shortages by halting some models, while others choose to build cars without chips and park them in warehouses until the chips are restored. Mr Tang said Stellantis would continue to use the chips it received to give priority to the highest-margin models, in the same way as many of its competitors.

Earlier on July 21, Daimler also said that the chip shortage would affect its car sales in the second half of 2021 and that the shortage would continue until 2022. However, Harald Wilhelm, the company's chief financial officer, said the chip shortage would be less severe after 2022. Last week, Sweden's Otto Liv, the world's largest maker of airbags and seat belts, also said the impact of the chip shortage would last until 2022.

Mr Tang said Stellantis could also boost its electrification spending if needed. The company had previously announced that it would spend more than 30 billion euros on electrification by 2025. He also said the company could also increase the number of planned battery plants to more than five or increase their capacity.

Mr Tang said Stellantis would build three battery plants in Europe and two in North America. Among them, at least one factory will be located in the United States, and the company will announce specific plans to build the plant before the end of the year. He also believes that public acceptance of electric vehicles will accelerate as concerns about climate change caused by events such as floods in Europe intensify.