Business

Stellantis was temporarily forced to close his factory in France because … a single missing part from Continental

Missing a piece and all the pieces off! This revised proverb describes very properly the state of affairs of the Stalantis factories in Renaissance and Sochax, which had been forced to droop manufacturing till 1 July due to lack of provide of a single part in the manufacture of hundreds of automobiles. To our information, the German automated supplier Continental is now not in a position to ship NaC (linked navigation), these mapping and leisure units which have change into important to the dashboard. This disruption of provide is related to a scarcity of semiconductors, and is sufficient to disable all manufacturing at Stalantis’ two French factories. When contacted, Continental Automotive France declined to remark.

About 5,000 employees will already be educated to “construct expertise” and thus “keep away from any lack of pay,” in accordance to AFP information company from Renaissance Factory.

20% decrease gross sales in 2021

This isn’t the primary time that the autonomous group, Peugeot-Citroën and Fiat Chrysler have merged, forcing manufacturing suspension. After a very sturdy restoration in post-Covid exercise, the semiconductor deficit has now engulfed the availability chain for greater than a 12 months and a half. According to our sources, the Renaissance website has misplaced 23 days of manufacturing because the starting of the 12 months, 18 days for the Soakas plant and 15 days for the Horden plant.

For the group led by Carlos Tavares, these preparations are extraordinarily costly because outdoors of suspending factory actions, the group should reside with a actual deficit in phrases of gross sales quantity. In 2021, this deficit thus prevented the supply of 1.7 million automobiles, or 20% of whole gross sales.

Semiconductor: According to Carlos Tavares (Stellantis), producers top off and preserve deficits

Worse … this deficit depends on giant business launches such because the Peugeot 308 or DS4, two important fashions for each manufacturers, that are struggling to provide for the dearth of semiconductors. For Citroen, it additionally fell badly because the Renes factory was in the method of accelerating manufacturing of the C5 Aircross, one of the vital worthwhile Chevron model automobiles. In Sochaux, this suspension happens when the factory is working at full pace (together with three groups) to make 3008 and 5008, two fashions on the finish of the cycle however whose quantity remains to be enough, and which stays a vital contributor to income.

CEO thunders in opposition to gear makers

Carlos Tavares, who because the starting of the semiconductor disaster, blamed the delay on the availability of Tier 1 automated suppliers, alleging that their provide expectations had failed in the mission. The boss of Stalantis, nonetheless, didn’t particularly point out any gear provider. Earlier this 12 months, on the sidelines of Stellantis Investors Day, Carlos Tavares mentioned he “now not believes in the guarantees of sure suppliers”, reserves the proper to assessment his relationship with them or change the business configuration of the chain. Through provide, particularly by way of close relationships resembling with Foxconn in Taiwan.