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MILAN, (Reuters) – Stellantis, fourth largest automaker worldwide, reported on Thursday that its third-quarter revenue dropped 14% pro forma. The main reason was a drop of 600,000 cars or 30% in planned production following the chip crisis.

Revenue for the third quarter was $37.5 million or 32.551 Billion Euros, which is below analysts’ expectations (Reuters Poll: 33.02 Billion euros).

Richard Palmer, chief financial officer said “The level and severity of the chip shortage were probably slightly higher than we had anticipated when we last spoke with the market in august.” He added that the annual total production lost due to chip crises would surpass the prior forecast of 1.4million units.

Palmer stated that there was a modest improvement in the supply of chips for October over the previous month. The company expects such a trend to continue throughout the fourth quarter.

Palmer said that visibility on semiconductors is still a challenging subject in the industry.

Fiat Chrysler and France’s PSA merged to create the carmaker. The company confirmed that it will achieve an operating margin of 10% for the full year, subject to no further decline in semiconductor supply or significant lockdowns in Europe or the U.S.

Stellantis revised its full-year industry outlook for some regions. It lowered them for North America, South America as well as the larger Europe area and improved them for Africa and the Middle East. They remained the same for India, Asia Pacific and China.

($1 = 0.8619 euros)