Stellantis CEO on Earnings, Chips, Jeep Plant Closure in China

The transcript discusses the slow improvement in chip supply, highlighting reduced troublemakers and a forecast for normalization by 2023. It explores the competitive landscape at the Tier 1 supplier level and the importance of selecting the right partners. The conversation shifts to economic factors affecting demand and pricing, including cost inflation and potential recession impacts. Strategies for managing the energy crisis in Europe are outlined, emphasizing the company's robust manufacturing footprint. Finally, the decision to exit a joint venture in China is explained, citing political interference and a focus on profitable niches.

What is the expected timeline for the semiconductor supply crisis to be resolved?

• By the end of 2022

• By the end of 2023

• By the start of 2024

• By mid-2023

What is a key factor in the competitive landscape at the Tier 1 supplier level?

• Control of the supply chain

• Price of raw materials

• Number of employees

• Location of manufacturing plants

How has the company been managing its supply chain?

• By reducing the number of suppliers

• By outsourcing all production

• By taking more control over raw materials

• By increasing sales of low-end models

What economic factor is causing higher transaction prices?

• Semiconductor supply crisis

• Increased demand for low-end models

• Decrease in steel prices

• Stable energy costs

What is the company's strategy to handle the energy crisis in Europe?

• Shift production to Asia

• Reduce overall production

• Focus on southern Europe

• Increase production in Germany

Why did the company decide to pull out of the joint venture in China?

• Non-compliance by the partner

• Political stability

• High production costs

• Lack of market demand

What is the company's focus in China after pulling out of the joint venture?

• Expanding manufacturing plants

• Mass production of low-cost vehicles

• Reducing workforce

• Highly profitable niches