Stellantis to suspend production at Italy’s Sevel plant over chip shortage

Stellantis will suspend production in its plant in Italy that makes light commercial vehicles by next week due to ongoing semiconductor chip shortage.

“I can confirm production at the Sevel plant will be suspended next week over a shortage of chips from a supplier,” the automaker’s spokesperson said.

In July, Stellantis CEO Carlos Tavares warned the semiconductor shortage can continue to remain in the next year.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.