By Giulio Piovaccari

TURIN (Reuters] – A Stellantis van manufacturing plant in Russia has been forced to close due to a lack of spare parts. Carlos Tavares was the chief executive.

According to the world’s fourth-largest carmaker, it has already announced that it had stopped all imports and exports with Russia. In partnership with Mitsubishi, it also operates a van manufacturing plant in Kaluga.

Following the Russian invasion last month of Ukraine, Kaluga’s production is continuing for the local marketplace.

Tavares didn’t say whether Kaluga was being written down or if it was a concern that Moscow could seize the Kaluga if the operations were halted.

Stellantis, which was created in the merger of Fiat Chrysler & Peugeot (OTC) maker PSA last year, presented its first business plans earlier this month.

Tavares said the group’s focus was on executing the plan and it was not looking at major M&A deals.

“We always look at what is in the market, but don’t need M&A, this is very clear,” he said.

SUPPLY CHAIN

Tavares stated that Stellantis will be able source chips from the United States and Europe within three to four years, addressing a shortage in supply which has affected the automotive industry.

Tavares said that while we will need to look for a way to adjust the supply chain, there are several opportunities to source semiconductors locally. He is the CEO of Opel, Jeep, Maserati and Citroen.

Tavares stated that the technology behind the transition to electric mobility is still not finalised. This makes it difficult for automakers plan future supply of raw material and make plans.

He stated that although we are making progress in the supply chain and have reached a deal to obtain lithium, there is still much to be done. The endpoint for the chemistry and production of batteries is still unclear. When technology is rather definitive, we’ll be able to lock raw material supply through investments, deals, M&A.”

Tavares stated that carmakers must reduce the cost of electric cars over the next four years, and called for governments’ support.