PARIS, France: Carlos Tavares, head of carmaker Stellantis, said this week that the semiconductor supply chain will remain tight until the end of 2023.
Stellantis is the corporate owner of 16 auto brands, including Abarth, Alfa Romeo, Chrysler, Citron, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Mopar, Opel, Peugeot, Ram and Vauxhall.
"The situation will remain very complicated until the end of 2023, then will ease a little. Semiconductor manufacturers have an interest in making business with us again, especially as they are raising prices," Tavares said, as quoted by French newspaper Le Parisien.
Shortages of semiconductor chips over the past years, caused partly by the COVID-19 pandemic, have forced automakers around the world to cut production.
While these shortages are now easing, car companies are facing new rising costs.
According to French industry figures, new car registrations increased by 5 percent last month, but remained down nearly 12 percent since the start of the year, indicating that the shortages are continuing to affect manufacturers' sales.