The global chip shortage is a major setback for the vehicle industry as the second wave of COVID-19 leaves a significant demand to be fulfilled. In the third quarter, the shortage cost Europe's two largest carmakers, Volkswagen AG and Stellantis N.V., a total of 1.4 million vehicles in lost production. Meanwhile, Stellantis reported a 14% drop in Pro-forma quarterly sales after chip shortages reduced expected quarterly output by 30%, or 600,000 vehicles. In October, Stellantis finance head Richard Palmer reported a modest increase in chip supply, which he predicted would continue into the fourth quarter. The chip crisis has also hampered the quarterly performance of other major automakers, such as General Motors and Renault.

Source: Hindustan Times November 01, 2021 11:38 UTC