Jeep, Dodge maker Stellantis temporarily closing five North American plants due to chip shortage

A United Auto Worker member leaves the Fiat Chrysler Automobiles Warren Truck Plant after the primary work shift on May 18, 2020 in Warren, Michigan.

Gregory Shamus | Getty Images

A world shortage of semiconductor chips is forcing Stellantis to temporally shut five North American plants beginning subsequent week, the corporate confirmed Friday afternoon.

The impacted plants are in Illinois, Michigan, Mexico and two in Ontario, Canada. They construct an array of merchandise for the corporate – from older Ram 1500 pickup vehicles and Jeep fashions to minivans and Dodge and Chrysler vehicles. The services, previously a part of Fiat Chrysler, are anticipated to be closed from Monday by means of early or mid-April, in accordance to the corporate

“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” the corporate stated in an emailed assertion to CNBC. A spokeswoman for Stellantis declined to disclose what number of items of manufacturing are anticipated to be misplaced.

Semiconductors are key parts used within the infotainment, energy steering and braking of latest automobiles, amongst different techniques. Suppliers directed semiconductors away from the automotive trade as a number of plants shut down final yr due to Covid.

Consulting agency AlixPartners estimates the chip shortage will reduce $60.6 billion in income from the worldwide automotive trade this yr.

The shortage is impacting each automaker otherwise. Several producers, together with General Motors, Ford Motor and Chinese EV start-up Nio, this week additionally introduced manufacturing cuts or plans to prolong downtime at services which have already been affected.

Vehicles impacted by Stellantis’ manufacturing halts embrace the Chrysler 300 sedan and Pacifica and Voyager minivans, Dodge Charger and Challenger vehicles, Jeep Cherokee and Compass SUVs and Ram 1500 Classic pickup. A more recent model of the Ram 1500 stays in manufacturing at a unique Michigan plant.

Stellantis is the merged automaker of Fiat Chrysler and France-based Groupe PSA. In the U.S., its core manufacturers embrace Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.

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