Stellantis and Renault halt Spanish assembly lines as chip shortage persists | The Financial Express

Stellantis and Renault halt Spanish assembly lines as chip shortage persists

The global chip shortage, caused by pandemic supply chaos and booming demand, has ravaged the automotive sector with many companies halting production temporarily.

Stellantis and Renault halt Spanish assembly lines as chip shortage persists

Carmakers Stellantis and Renault will partly halt their Spanish plants in the coming days and weeks as the lack of microchips persists, two union representatives told Reuters on Friday.

The global chip shortage, caused by pandemic supply chaos and booming demand, has ravaged the automotive sector with many companies halting production temporarily.

Two Renault factories in Spain’s Castile and Leon region will come to a temporary halt, with one shutting down entirely on Saturday and the other cancelling shifts on several days this week and the next, a representative from the CCOO union said.

Stellantis ranked last among major U.S. automakers in corporate average fuel economy in 2021, according to the U.S. Environmental Protection Agency. U.S. regulators earlier this year said they would increase penalties for failing to hit CO2 emissions targets, a decision that could cost Stellantis as much as $572 million.

At Stellantis’ plant in Vigo, in northwestern Spain, the company has cancelled Saturday and Sunday night shifts.

“They stopped production for 15 days in February. The supply shortage could mean more shut-downs in any moment,” a Stellantis union representative told Reuters.

A Renault spokesperson was not immediately available to comment and Stellantis did not return phone calls or e-mails.

In recent months, both companies have halted output several times in Spain.

Stellantis has said that starting in 2024 it will spend $2.8 billion to retool Brampton, Ont. factory that builds the Charger and Challenger to assemble vehicles that “support the company’s electrification plans.”

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