Stellantis’ Russian van plant running short on parts

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TURIN (Reuters) -A Stellantis van plant in Russia must shut shortly as it’s running out of parts, the corporate’s chief govt Carlos Tavares stated on Thursday.

The world’s fourth largest carmaker has beforehand stated it had suspended all exports and imports of autos with Russia, the place it operates a van-making plant within the metropolis of Kaluga, in partnership with Mitsubishi.

Production in Kaluga stays for the native market in the intervening time, following final month’s Russian invasion of Ukraine.

Speaking at a information convention, Tavares didn’t say whether or not the corporate was contemplating a writedown of the worth of Kaluga or feared it could possibly be seized by Moscow if operations halted.

Stellantis earlier this month introduced its first marketing strategy, simply over a yr after it was fashioned via the merger of Fiat Chrysler and Peugeot maker PSA.

Tavares stated the group’s focus was on executing the plan and it was not taking a look at main M&A offers.

“We all the time take a look at what’s out there, however do not want M&A, that is very clear,” he stated.

SUPPLY CHAIN

Addressing a provide disaster that has harm the automobile business, Tavares stated Stellantis anticipated to have the ability to supply pc chips from Europe and the United States inside 3-4 years.

“We must discover one other method to adapt the provision chain, we now have a number of initiatives to create native sourcing of semiconductors,” added Tavares, the top of an organization whose manufacturers embrace Jeep, Maserati, Citroen and Opel.

Tavares stated the expertise underpinning the shift to electrical mobility was not but finalised, making it exhausting for automakers to plan and safe future provides of uncooked supplies.

“We’re transferring down the provision chain, we now have sealed a deal to safe lithium for example, however we have to do extra,” he stated. “What the ending level is for the chemistry of battery cells isn’t but clear. When expertise is fairly definitive, we’ll have the ability to lock uncooked materials provide via investments, offers, M&A.”

Tavares stated carmakers wanted to chop the prices of electrical autos over the subsequent 4-5 years and known as on governments to assist with the trouble.

(Reporting by Giulio PiovaccariWriting by Keith WeirEditing by Gianluca Semeraro and Mark Potter)



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