Stellantis is working on technical solutions to manage the chip shortage, such as changing the dashboard of the Peugeot 308.
Palmer said the impact could continue into 2022. “We don’t have great visibility,” he said. “As such it would be imprudent to assume the issue is going to go away.”
Overall, shipments were up 11% to 1,567,000, due to higher demand and product mix. Production losses due to the semiconductor chip shortage darkened the improvements over the first quarter of 2020, when production was suspended temporarily due to the pandemic.
Stellantis's revenues in its two main markets, North America and Europe, were balanced, with North American contributing 15.9 billion euros and Europe just over 16 billion euros. Both were improvements over 2020. South America revenues also were up, hitting 2.1 billion euros.
Palmer reported that progress on synergies in the merger “is very encouraging.” Executives have pledged 5 billion euros in cost savings each year.
“Obviously, we’re ramping up, and it’s going to take time to realize the full potential of the merger,’’ he said. “But I think we are very much on track.”
This version corrects the revenue figures to billions, not millions.