Stellantis and Renault stop Spanish assembly lines as chip shortages persist

Stellantis and Renault stop Spanish assembly lines as chip shortages persist

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MADRID (Reuters) – Automakers Stellantis and Renault Two union representatives told Reuters on Friday that the Environmental Protection Agency (EPA) will partially shut down its Spanish factories in the coming days and weeks as microchip shortages persist.

The global chip shortage, caused by pandemic supply chaos and surging demand, has devastated the auto sector with many companies temporarily halting production.

A representative from the CCOO union said Renault’s factories in the Spanish region of Castile and Leon will be suspended, with one shutting down completely on Saturday and the other canceling multi-day shifts this week and the following day.

At its Stellantis plant in Vigo, northwest Spain, the company has canceled shifts on Saturdays and Sundays.

“They halted production for 15 days in February. Shortage of supplies could mean more shutdowns at any moment,” a representative of the Stylantis union told Reuters.

A Renault spokesman was not immediately available for comment and Stellantis did not respond to phone calls or emails.

In recent months, the two companies stopped production several times in Spain.

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