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What End of the Chip Shortage? Carmakers Remove More Systems, Stop Production

Industry analysts seem to be confident that the second half of the year would bring a substantial recovery in terms of the global chip inventory, but until this happens, carmakers continue to struggle with the crisis.
Stellantis has confirmed more production adjustments 6 photos
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And unfortunately, the only ways to reduce the disruptions caused by the lack of semiconductors are the same ones these companies have been turning to for the past two years, including removing non-critical systems from their cars and temporarily stopping the production at some plants.

Volkswagen, for instance, has recently announced that some models sold in Australia would no longer come with blind-spot monitoring and rear cross-traffic alerts because of the lack of chips.

The decision would impact only the models sold in the country and manufactured during a six-month period, as VW hopes the chip inventory improvements would allow the company to bring back all systems to its cars towards the end of the year.

This week, Stellantis too confirmed it’s struggling with the chip shortage, again. The company decided to temporarily halt the manufacturing at the Melfi plant in Italy for one week between June 28 and July 2.

The reason is the same painful lack of semiconductors, with the company planning to resume all operations at full speed early next month.

The factory in charge of building models like Jeep Compass and Renegade has been heavily hit by the chip crisis, so this month, its production lines have been running for just 7 days. There are signs that July wouldn’t produce any improvement, and as it turns out, Stellantis doesn’t expect the chip struggle to end before the end of the year.

The Melfi plant isn’t the only Stellantis factory that’s affected by the company’s strategy of reducing the disruptions caused by the chip shortage, as two more facilities in France would also halt their operations temporarily for the very same reasons.


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