Stellantis warns of billion-euro raw material and chip cost surge in 2027-2028
Rising input costs are set to intensify pressure on European carmakers as supply chain inflation shifts toward the next model cycle. Stellantis says the expected increase in prices for raw materials and electronic components in 2027 and probably 2028 amounts to billions of euros for the group.
Highlights
- Stellantis CEO Antonio Filosa projects significant raw material and chip cost increases totaling billions of euros for the automaker in 2027 and likely 2028.
- Inflation in memory chips, printed circuit boards, and semiconductors will drive these cost surges, impacting both Stellantis and automotive suppliers.
- Persistent input and electronics inflation could extend margin pressures for Stellantis and the broader auto supply chain beyond the short term.
Cost pressures emerge for future production cycle
As reported by Reuters, Stellantis Chief Executive Antonio Filosa says the automaker and its suppliers are set to face significant cost increases tied to raw materials and electronic components over the next two years.Speaking at the annual general assembly of Italian auto parts lobby Anfia in Milan on Thursday, Filosa says Stellantis expects substantial inflation in 2027, and probably also in 2028, linked to memory chips, printed circuit boards and semiconductors.
He says the impact for Stellantis alone is measured in billions of euros.
Broader implications for the auto supply chain
The warning points to continued cost strain across the automotive sector, with manufacturers and suppliers still exposed to higher prices for key industrial inputs and electronics used in vehicle production.For Stellantis, the outlook suggests margin pressure could persist beyond the immediate term if suppliers pass through higher costs and component inflation remains elevated across the industry.
As noted in our earlier article, UBS Fed outlook extended expected rate hikes into 2027 amid persistent inflation pressures.
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