Stellantis Sounds Alarm Over Structural Inflationary Pressures

Major automaker Stellantis NV has joined the growing list of companies sounding the alarm over inflationary pressures that are becoming increasingly persistent, despite policy makers’ and economists’ insistence otherwise.

Stellantis CEO Carlos Tavares is warning of rising raw material costs from all sectors, and anticipates that the ongoing semiconductor shortages will eclipse into next year. “I see the inflationary pressure very clearly,” he said during a webinar hosted by the Automotive Press Association which was later cited by Bloomberg. “I see inflation coming from many different areas.”

Tavares said he is seeing surging transaction prices in the manufacturer’s day-today operations, while supply shortages of key input materials such as semiconductors are creating significant disruptions and cost hikes. According to Tavares, these sort of elevated price pressures are becoming structural, despite the views of some economists, which insist that such inflation is merely temporary.

Stellantis, which owns major brands such as Jeep, Ram, and Maserati, is among the latest companies to caution on the growing shortages and subsequent surging costs of key materials. PPG Industries, an American based paint supplier, has recently said it will raise prices for its products for a second time, as it faces significant input price pressures, particularly for raw materials and logistics.

Jerome Powell, are you listening?

Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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