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Home News Stellantis suspends Vienna production over chip shortage

Stellantis suspends Vienna production over chip shortage

Published on 05/10/2021

US-European auto giant Stellantis announced Tuesday it was suspending production in Austrian capital Vienna between October 18 and December 31, because of the world shortage of semiconductors.

“Production will resume on January 2, 2022,” it said, adding that in the meantime, staff would be put on short-time working. In its statement, the company blamed the problem on the ongoing Covid-19 pandemic.

The carmaker, the product of the merger between PSA (Peugeot, Citroen, Opel) and FCA (Fiat, Chrysler), employs around 460 people at its Vienna plant.

The shortage of semiconductors, a key component in cars’ electronic systems, has already led other companies to lay off staff in several countries, including Germany.

The car industry is competing for these vital chips with the manufacturers of computers and smartphones.

Germany’s car industry recorded poor figures in September, with fewer than 200,000 cars sold, the worst figure in 30 years.

In the same month, car sales in the United Kingdom continued their fall, down 34.4 percent to the lowest level since 1998.