DETROIT — The worldwide semiconductor chip scarcity that has hit automakers world wide and constrained automobile manufacturing will simply drag into subsequent 12 months, Stellantis Carlos Tavares stated.

The feedback by Tavares at an Automotive Press Affiliation occasion in Detroit on Wednesday echoed those made by Daimler earlier within the day.

“The semiconductor disaster, from the whole lot I see and I am undecided I can see the whole lot, goes to pull into ’22 straightforward as a result of I do not see sufficient indicators that further manufacturing from the Asian sourcing factors goes to return to the West within the close to future,” Tavares stated.

The global chip shortage comes as demand for vehicles has spiked throughout the world economic system’s restoration from the coronavirus disaster, driving up costs of recent and used autos.

Some automakers have tailored to the chip scarcity by dropping options from their fashions, whereas others have built vehicles without the necessary chips and then parked them till their meeting will be completed later.

Stellantis is making choices round altering the range of chips it intends to make use of, he stated, including the visibility round chips isn’t nice. It takes roughly 18 months to re-engineer a automobile to make use of a distinct chip due to the sophistication of the expertise concerned, he stated.

Tavares stated Stellantis will proceed to prioritize its highest-profit fashions with the chips it’s receiving, echoing an strategy taken by rivals.

Earlier on Wednesday, Daimler stated the chip scarcity would dent automobile gross sales within the second half of 2021 and lengthen into 2022. Nonetheless, Daimler CFO Harald Wilhelm stated the scarcity could be much less extreme subsequent 12 months.

Final week, Sweden’s Autoliv, the world’s largest maker of airbags and seat belts, additionally stated the scarcity might linger into 2022.

Tavares additionally stated on Wednesday Stellantis might, if wanted, increase deliberate spending on electrification past the greater than 30 billion euros via 2025 it beforehand outlined. He added it additionally might elevate the variety of battery vegetation it plans to construct past 5, or elevate these vegetation’ deliberate capability.

Stellantis will construct three of the battery vegetation in Europe and two in North America, Tavares stated. No less than one of many North American vegetation can be in the USA and people websites can be introduced earlier than year-end.

Tavares stated he sees public acceptance of electrical autos accelerating as issues about local weather change rise with occasions just like the flooding in Europe.

He additionally stated Stellantis was forward on plans to realize 5 billion euros ($5.89 billion) in annual price financial savings from the January merger of Fiat Chrysler and PSA Group.